[Market Focus] JVM Hits Record High on 'Earnings Surprise' and Upgraded Target Prices from Analysts

JVM showed strong performance in early trading.

As of 9:04 a.m. on July 31, JVM was trading at 29,200 won, up 12.09% (3,150 won) from the previous day, marking a new 52-week high.

Investor sentiment appears to have improved following news that the company achieved its highest-ever quarterly results in the second quarter. On the previous day, JVM announced through a disclosure that its consolidated sales and operating profit for the second quarter of this year were provisionally tallied at 47.5 billion won (up 25.9% year-on-year) and 10.9 billion won (up 58.7%), respectively.

This is the highest second-quarter performance in the company's history. During the same period, net profit increased by 47.3% to 8.9 billion won. The strong sales of automated pharmaceutical dispensing equipment, such as 'Countmate' launched for the North American market and 'Menis' supplied to Europe, were cited as the main contributors.

Following this 'earnings surprise,' securities firms have been raising their target prices one after another. Choi Seunghwan, a researcher at Shinhan Investment Corp., said, "Although the stock price lost momentum in 2024 due to one-off underperformance, the positive results in the first and second quarters of this year are expected to remain valid through next year, so we anticipate an acceleration in stock price re-rating," raising the target price from 33,000 won to 38,000 won.

Lee Geonjae of IBK Investment & Securities stated, "Considering the company's 4.7% treasury stock holdings and approximately 110 billion won in distributable profits, the current stock price appears to be significantly undervalued," raising the target price from 35,000 won to 37,000 won.