[Click eStock] "Jin Air Expected to Achieve Best Ever Q1 Performance"

Hanwha Investment & Securities forecasted on the 1st that Jin Air's operating profit for the first quarter of this year will significantly exceed market expectations. Accordingly, they maintained a 'Buy' investment rating while raising the target price to 18,000 KRW, anticipating annual earnings growth.

Researcher Park Soo-young of Hanwha Investment & Securities stated, "The operating profit for the first quarter of this year is expected to surpass market expectations by 75%," adding, "We are raising the target price in line with the upward revision of earnings estimates."

Regarding Jin Air's first-quarter performance, Researcher Park estimated, "Sales are projected at 447.6 billion KRW, with an operating profit of 113.3 billion KRW," and noted, "The market consensus for operating profit remains around 65 billion KRW, so an earnings surprise is anticipated." This estimate surpasses the record highest quarterly profit of 84.9 billion KRW recorded in the first quarter of last year.

The reason for confidence in the strong first-quarter performance is oil prices. Researcher Park analyzed, "Although there are recent concerns about rising oil prices, the quarterly average remains below the level of the same period last year."

Concerns about performance in the second quarter, entering the off-season, and beyond are expected to be less severe than anticipated. Researcher Park diagnosed, "Compared to last year, cost increase noise is relatively lower this year, and while the introduction of aircraft is slow, demand for medium- and short-distance passengers, mainly family units, is expected to be stronger," adding, "From the second quarter onward, the base burden will also ease, making annual earnings growth possible."

Researcher Park evaluated, "While overall LCC (Low-Cost Carrier) sector performance is expected to improve under the same conditions, Jin Air's valuation attractiveness is the highest," and added, "With the sector's attractiveness having declined previously and supply-demand gaps now overlapping, the stock price rally may extend somewhat longer."