[Alpha Biz= Reporter Kim Minyoung] Daishin Securities has lowered its target price for Modetour Network to 17,000 won, a 19% decrease, while maintaining a "Buy" rating. This adjustment reflects concerns over the impact of the Tmon and WEMAKEPRICE settlement delays, which are expected to lead to a downward revision of earnings estimates through the third quarter.
On the 29th, Daishin Securities stated, “Modetour has experienced sluggish stock performance since the second quarter due to a slowing recovery. We anticipate that the weak business environment will continue through the third quarter, with an estimated 4 billion won impact on operating profit due to the T-MEF issue.”
The report projected a 34% increase in second-quarter operating revenue to 52.1 billion won, but expected a 46% decline in operating profit to 2.2 billion won, falling short of consensus estimates.
Daishin Securities also noted, “The number of outbound travelers in the second quarter decreased by 26% compared to the first quarter, with declines in all regions except China, resulting in a relatively large drop. Increased marketing costs due to intensified competition are expected to further lower the operating profit margin.”
However, Daishin Securities mentioned, “Despite the recent challenges, the good booking rates for package tours during the Chuseok holiday in September and strong sales of South American products suggest that performance will improve in the latter part of the year. Hence, we are maintaining our 'Buy' rating.”
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
