Shinhan Investment Corp. analyzed on the 5th that Golfzon's performance normalization has begun. The investment opinion 'Buy' and the target price of 110,000 KRW were maintained.
Golfzon recorded sales of 166.5 billion KRW and an operating profit of 14.7 billion KRW in the fourth quarter of last year. This represents increases of 17.8% and 97.7%, respectively, compared to the same period last year. Lee Byunghwa, a researcher at Shinhan Investment Corp., explained, "Sales met estimates, and operating profit improved significantly," adding, "The confirmed growth in overseas sales and normalization of GDR are positive signs."
Shinhan Investment Corp. expects Golfzon's sales and operating profit in the first quarter of this year to reach 185.2 billion KRW and 31.9 billion KRW, respectively. The researcher noted, "We are focusing on the NX upgrade transition, the US simulator, and the performance of Japan's GDR," explaining, "Among the NX pre-order volume, 5,355 units were reflected in the second half of last year, and demand for more than 11,000 NX conversions is currently pending."
He said, "Overseas sales in the first quarter are expected to be 27.2 billion KRW, a 58.3% increase compared to the same period last year," adding, "In the US, demand for golf simulators in sports pubs is strong, and the US dealer network has expanded from three to five. In Japan, the golf practice range upgrade market is showing vitality, and GDR order volume is on the rise."
He continued, "It is time when the solid franchise business performance and the growth story of overseas markets will be reflected in the stock price," emphasizing, "It is time to seize opportunities rather than worry."
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