NH Investment & Securities analyzed on the 19th that Cuckoo Holdings will continue its revenue growth and its shareholder return policy is expected to be continuously expanded. It maintained a target share price of 31,500 won and an investment opinion of 'buy.' The closing price of Cuckoo Holdings on the previous trading day was 22,250 won.
In the fourth quarter of last year, Cuckoo Holdings recorded consolidated revenue and operating profit of 239.3 billion won and 37 billion won, respectively, which is a 11% and 52% increase compared to the previous year. Despite an increase in advertising expenses, the proportion of high-profit products expanded, leading to favorable profitability.
Cuckoo Holdings is a holding company that owns Cuckoo Electronics, which operates in the home appliance business, CUCKOO Homesys, which conducts rental business, and Entop. It holds over 70% of the domestic rice cooker market share.
Domestic sales of rice cookers decreased by 4.6% compared to the previous year, but sales of other products surged by 64% compared to the previous year, indicating ongoing product diversification.
Research Institute Seung-Young Lee from NH Investment & Securities noted, "In the case of sales in China, domestic consumption of home appliances has revived, recovering to last year's sales level," and added, "In January this year, the Chinese government's 'Yigu Huanshin' policy (substituting durable goods) includes rice cookers, which is expected to boost sales growth in China."
Sales in the United States amounted to 21.6 billion won, an increase of 28% from the previous year due to year-end effects and sustained growth, setting a quarterly record.
The Research Institute said, "Last year's dividends per share were 1,200 won, and dividend expansion is continuing," adding that "Based on the growth of the home appliance business and the expansion of CUCKOO Homesys dividends, dividends per share are anticipated to be 1,350 won this year."
He continued, "The CUCKOO Homesys Malaysian corporation is pushing for a local listing, and it is expected that CUCKOO Homesys will utilize part of its existing 62.5% equity through existing share sales to fund dividends."