[Click eStock] "Fila Holdings, Positive Efforts to Enhance Shareholder Value... Target Price Raised to 48,000 KRW"

On the 21st, Kiwoom Securities positively evaluated FILA Holdings' efforts to enhance shareholder value and raised the target stock price to 48,000 KRW. The investment opinion was maintained as 'Buy.'

Sojeong Cho, a researcher at Kiwoom Securities, stated, "Losses in FILA's core business are expected to shrink, and the company's efforts to enhance shareholder value also appear positive." She explained, "FILA Holdings announced plans for treasury stock acquisition and cancellation through a disclosure, which can be interpreted as a positive signal in terms of enhancing shareholder value."

FILA Holdings recorded consolidated sales of 760.8 billion KRW and an operating loss of 41.4 billion KRW (continued deficit) in the fourth quarter, falling short of market expectations. This was due to decreases in profits from both FILA's core business and Acushnet.

The biggest reason for the poor performance of FILA's core business so far was the large deficit of FILA USA. The USA corporation has been working on inventory reduction and cost efficiency throughout this year.

Researcher Sojeong Cho analyzed, "Accordingly, the annual inventory reduction target was achieved, and considering the decrease in selling and administrative expenses, the effects of efforts to improve the business structure are gradually becoming visible." She added, "Although turning a profit this year is difficult, the fact that results are gradually appearing is certainly positive."