[Featured Stock] Lotte Chilsung Weakens Amid Ongoing Consumer Slump Concerns... New Low

Lotte Chilsung is weak amid forecasts that consumer sluggishness will continue this year. It recorded a 52-week low during trading.

As of 11:12 a.m. on the 15th, Lotte Chilsung is trading at 105,400 won, down 1,700 won (1.59%) from the previous day. This is a 52-week low. Lotte Chilsung has been on a decline for the past four consecutive days.

The outlook that last year's fourth-quarter earnings would fall short of expectations due to weak consumption and concerns that consumer sluggishness will prolong this year are interpreted as having a negative impact on the stock price.

On this day, IBK Investment & Securities forecasted that Lotte Chilsung's fourth-quarter earnings last year would fall short of market expectations. Kim Taehyun, a researcher at IBK Investment & Securities, said, "Lotte Chilsung's consolidated fourth-quarter sales and operating profit are estimated to be 929.4 billion won, up 1.2% year-on-year, and 26.1 billion won, up 228.3%, respectively," adding, "Although the profit improvement will be significant due to the base effect, it is expected to fall short of consensus (average securities firm forecast) due to sluggish beverage sales, cost burdens, and the rise in the won-dollar exchange rate."

There is an opinion that earnings expectations should be lowered due to the prolonged consumer sluggishness. Researcher Kim said, "As the slowdown in beverage and liquor consumption is expected to continue this year, we are adjusting earnings estimates and lowering the target stock price from the previous 170,000 won to 140,000 won, reflecting the lowered valuation."