[Click e-Stock] "Dio Expected to Turn Profitable This Year"

On August 20, Hana Securities analyzed that Dio is expected to turn a profit this year. The company did not provide an investment opinion or a target price.

In the second quarter, Dio recorded sales of 40.1 billion KRW and an operating profit of 3 billion KRW. Compared to the same period last year, sales increased by 158%, and operating profit turned positive. Han Yugun, a researcher at Hana Securities, stated, "Sales increased in the second quarter due to growth focused on China, Europe, the Middle East, and the CIS region." He also evaluated, "The performance growth of overseas subsidiaries in Mexico, India, Russia, and Taiwan, which are strategically aimed at increasing market penetration this year, is positive."

He further explained that the effects of restructuring the sales network are beginning to show. He said, "To expand market share in China, we are opening new directly managed stores in first- and second-tier cities and expanding and reorganizing distribution networks through agencies in third-tier and lower cities. In India and T?rkiye, the organization is also being continuously expanded, and in Russia, visible results have started to appear as the region has shifted from a single dealer to regional dealers."

Hana Securities forecasts that Dio's sales and operating profit for this year will reach 165 billion KRW and 12.68 billion KRW, respectively. He emphasized, "It is very positive that the effects of restructuring, such as implementing a big bath and reorganizing the sales network, are beginning to appear." However, he also stressed, "Strict cost control and top-line growth are key points that can ensure profitability and lead to a full-fledged growth phase beyond normalization."