[Click eStock] "Fila Holdings, 'Earnings Recovery + Shareholder Returns' Expected... Target Price Up"

Shinhan Investment Corp. raised the target price of Fila Holdings to 50,000 won on the 30th. It is analyzed that earnings are expected to hit bottom and recover, and expectations for shareholder returns are high.

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Hyunjin Park, a researcher at Shinhan Investment Corp., predicted, "Fila Holdings will record sales of 1.0873 trillion won and operating profit of 96.4 billion won in the third quarter of this year." This represents a 10% and 4% improvement, respectively, compared to the same period last year. Regarding this, he said, "Fila Korea and Acushnet Holdings are contributing to sales growth," adding, "In the domestic market, a certain running shoe has become popular, and the so-called ‘Eshafe’ product, known as the Han So-hee sneakers, is also gaining popularity."

Researcher Park stated, "Fila USA, the U.S. subsidiary, is focusing on recovering wholesale orders as negotiation power has somewhat improved due to local inventory reduction," and forecasted, "Even if marketing expenses increase due to strengthening the tennis line in the U.S., it will not have a significant negative impact on profitability."

He added, "Global royalty income is expected to continue its downward trend in the second half of the year following the first half," and predicted, "Expanding new products launched domestically this year overseas will slightly help the sales recovery of overseas subsidiaries."

He evaluated, "The total shareholder return amount over five years from 2022 to 2026 will reach up to 600 billion won," and said, "The shareholder return ratio compared to consolidated controlling shareholder net profit this year aims for up to 50%, which is the highest level among consumer goods companies." He added, "The dividend payout ratio will increase toward the latter part of the shareholder return period," and "Investment interest will intensify during the year-end dividend season."