[Click eStock] "Fila Holdings, Expected Effects of 'US Restructuring + Value-Up'"

Daishin Securities forecasted on the 11th that Fila Holdings' stock price will show a mid- to long-term upward trend due to shareholder value enhancement measures such as restructuring of its U.S. subsidiary and share buybacks.

Yoo Jung-hyun, an analyst at Daishin Securities, stated, "The full-scale restructuring of the U.S. subsidiary will lead to short-term performance improvement," adding, "The sales decline caused by the suspension of operations will become significant starting from the second half of next year." He further explained, "Next year's sales are expected to be 150.4 billion KRW, a 41% decrease compared to this year," and noted, "This is because there are contracted shipments scheduled until the first half of next year despite the suspension of operations."

Analyst Yoo said, "In the third quarter of this year, 18 billion KRW was spent on restructuring costs, and some cost burdens are expected next year as well," but he predicted, "However, after the restructuring, profitability will improve, allowing the company to escape from large-scale operating losses like in the past."

He also reported, "Fila Holdings announced plans to repurchase treasury shares worth 50 billion KRW next year, the same amount as this year." He added, "This year, the Chinese joint venture (JV) paid a special dividend of 80 million USD (approximately 110 billion KRW)," and projected, "Total cash inflows including Chinese commissions, royalties, and Acushnet dividends will reach about 420 billion KRW," concluding, "The cash on hand will be used as a resource to increase the shareholder return rate."