[Click eStock] "L&F, Ongoing Cost Pressure... Target Price ↓"

Daol Investment & Securities evaluated on the 10th that L&F's profitability improvement is delayed due to increased cost burdens. Accordingly, they maintained a 'Buy' investment rating but lowered the target price to 200,000 KRW.

Jeon Hyeyoung, a researcher at Daol Investment & Securities, stated, "L&F's operating loss in the first quarter was 203.9 billion KRW, significantly below consensus," and added, "The cost ratio increased compared to the previous quarter."

Researcher Jeon analyzed, "While order expectations remain valid, high costs will be reflected through the second quarter, so profitability improvement is expected to be slow." Additionally, she pointed out that the annual net loss will continue due to increased interest burdens.

Researcher Jeon forecasted, "Although shipments are expected to increase by more than 15% quarter-over-quarter until the end of the year, cost burdens will persist until the third quarter, and a turnaround to profitability will only be possible in the second half."