[Click eStock] "CNC International, Sustaining Unique Earnings Momentum... Target Price Up"

Target Price Raised by 10% Compared to Previous Level

On the 8th, KB Securities raised the target price for C&C International from 88,000 KRW to 97,000 KRW, citing the company’s continued unique performance momentum. The investment rating was maintained as 'Buy.'

Shinae Park, a researcher at KB Securities, explained, "The target price upgrade reflects a 9%, 7%, and 7% increase in operating profit estimates for 2024, 2025, and 2026, respectively. With the continuous emergence of hit products and acquisition of new clients, the company consistently delivers strong results that exceed market expectations each quarter, making a buy approach valid."

KB Securities revised upward C&C International’s sales and operating profit estimates for this year by 10% and 9%, respectively. Most of the sales estimate upgrade came from the domestic segment. Researcher Park stated, "The brand that became the number one domestic client last year saw a sharp increase in sales in the first quarter of this year, driving overall company sales growth. To meet the explosively growing demand, C&C International secured a new leased factory in the first quarter, which is scheduled to start operations in April." The inflow of new clients is also ongoing. Multiple new brand orders were secured in the first quarter, including a global high-end brand, a Middle Eastern brand, and a large low-cost American brand, all of which had been in product discussions for a long time.

The first-quarter performance is expected to meet consensus (the average forecast by securities firms). Researcher Park said, "C&C International’s consolidated first-quarter sales are expected to reach 70 billion KRW, a 52% increase year-on-year, and operating profit is expected to rise 76% to 10.5 billion KRW, generally in line with consensus. Following the fourth quarter of last year when sales exceeded 60 billion KRW for the first time, the first quarter is expected to reach 70 billion KRW for the first time, setting a new record for the highest quarterly sales."