[Market Focus] Dalba Global Drops Over 10% on Third-Quarter Earnings Miss

Dalba Global is experiencing a decline of more than 10% in early trading.

As of 9:10 a.m. on November 6, Dalba Global was trading at 143,300 won on the Korea Exchange, down 17,600 won (10.94%) from the previous day.

The company's third-quarter results falling short of market expectations appear to have had a negative impact on the stock price. On the previous day, Dalba Global announced in a regulatory filing that its consolidated operating profit for the third quarter was provisionally tallied at 16.7 billion won, up 18.6% year-on-year. During the same period, revenue increased by 59.3% to 117.3 billion won.

Son Minyoung, a researcher at KB Securities, commented, "Third-quarter revenue and operating profit missed the consensus (the average of securities firms' forecasts) by 4.0% and 30.9%, respectively," adding, "The reasons for missing market expectations were a slowdown in revenue growth due to the seasonal off-peak period and a deterioration in profitability." KB Securities lowered its target price for Dalba Global by 13.0% to 200,000 won. Son explained, "After confirming the third-quarter results, we revised down our operating profit forecasts for 2025 and 2026 by 10.6% and 24.3%, respectively, as overseas growth was slower than expected."

Heo Jena, a researcher at DB Securities, stated, "Dalba Global posted results in the third quarter that fell significantly short of market expectations," analyzing, "Due to entering a seasonal off-peak period, sluggish sales in key regions such as Japan and Russia, and aggressive spending on brand marketing for new product lines, the operating margin declined by 4.9 percentage points year-on-year to 14.2%." DB Securities lowered its target price to 180,000 won based on the downward revision of earnings estimates. Heo added, "Dalba Global's current share price is trading at a price-to-earnings ratio (PER) of 17 times based on 2026 net profit, which means valuation pressure remains. It would be advisable to consider buying after confirming a recovery trend in fourth-quarter results."