[Click eStock] "FILA Holdings Needs More Time to Recover Brand Power"

On the 20th, Daishin Securities judged that FILA Holdings would need more time to recover its brand power for a stock price increase. They maintained the investment opinion of 'marketperform' and the target stock price of 40,000 KRW.

Yoo Jeong-hyun, a researcher at Daishin Securities, said, "Due to the impact of the rising exchange rate, the effect of increased Korean won conversion profits from FILA brand royalties and Akusinet's earnings in the global market continues," adding, "The strong performance of the subsidiary Akusinet is expected to contribute to defending earnings in the second quarter."

However, he noted, "Although the loss of the U.S. corporation is showing a structural reduction trend this year as the company mentioned, the domestic deficit situation remains disappointing," and "Newly launched products such as Eshafe and Interrun in the domestic sector have received positive consumer responses, but their sales are not large enough to lead overall performance improvement, so their impact on profits and losses is considered minimal." He added, "It seems that more time is needed to recover brand power for a stock price increase."