[Featured Stock]"Disappointing Earnings Outlook for China Subsidiary"...F&F Down 8%

Shares of F&F are weak after the company released earnings guidance for its China subsidiary that fell short of market expectations.

As of 10:44 a.m. on the 11th, F&F was trading at 71,300 won, down 6,200 won (8.00%) from the previous trading day.

On this day, Lee Jinhyup, an analyst at Hanwha Investment & Securities, said, "Fourth-quarter results last year were in line with market expectations," but added, "The disappointing part was the guidance that the China subsidiary would grow 4% year-on-year. Considering that Discovery results are also included, this can be understood to mean that MLB's growth rate will be limited to around 3% year-on-year."

He said, "China's domestic demand stimulus is shifting its focus from durable goods to semi-durable goods and services. It is a disappointing outlook at a time when the possibility of a rebound in apparel sales is increasing," and pointed out, "Recent news that the company is considering a sale rather than an acquisition of TaylorMade is also disappointing. If the price is in the mid-4 trillion won range, a strategy of generating synergies through an acquisition would be more effective, but F&F has officially stated that nothing has been decided yet."

Jeong Jiyoon, an analyst at NH Investment & Securities, said, "F&F presented muted sales guidance in order to maintain tight inventory control. This reflects the high base effect from last year's strong China shipments and sluggish consumption trends," adding, "From a share price perspective, it is time for a new catalyst."