[Click eStock] "Ecomarketing, Full-Scale Global Expansion Expected in Q2"

Hana Securities expected Eco Marketing to make a full-scale entry into overseas markets starting from the second quarter of this year. However, it noted that it may take time to enter a profit growth phase after the overseas expansion, and the timeline could be adjusted accordingly. The target stock price was lowered from the previous 15,000 KRW to 13,000 KRW.

Eco Marketing recorded sales of 94.5 billion KRW and operating profit of 10.7 billion KRW in the fourth quarter of last year. Compared to the same period last year, sales increased by 8%, but operating profit decreased by 24%.

Lee Ki-hoon, a researcher at Hana Securities, explained, "Looking at the operating profit by segment, Daily&Co continues to underperform," adding, "Considering that it recorded an annual operating profit of over 10 billion KRW in 2023, launching new product categories is necessary."

He continued, "Due to delays in new product launches and overseas expansion, the annual operating profit last year was around 50 billion KRW," and analyzed, "It has not been able to achieve an annual operating profit of over 60 billion KRW for several years." He added, "Diversification into overseas markets or new consumer goods for Daily&Co is urgently needed."

The researcher stated, "Since early last year, overseas expansion efforts have been focused on high-income countries with brands like Andar," noting, "The progress has been significantly delayed compared to market expectations." He also forecasted, "Both Australia and the United States aim for substantial global sales growth in the second quarter of this year," and "Some results are expected to be confirmed in the second half of this year." He urged, "We need to monitor whether overseas expansion and new product launches proceed as planned in the second quarter of this year."