DB Securities noted on the 10th that C&C International's performance in China is rapidly recovering, indicating it is a good time for bottom fishing. The target price was raised from the existing 40,000 won to 50,000 won, upgrading the investment opinion from 'neutral' to 'buy'.
Heo Je-na, a researcher at DB Securities, said, "The shipment volume to major clients of the Shanghai branch in China is rapidly increasing," and added, "New supply volumes to domestic corporate clients will begin in the third quarter, and the recovery trend in the second half will accelerate."
DB Securities estimated that C&C International will achieve 74.6 billion won in revenue in the second quarter of this year, with an operating profit of 8 billion won. The operating profit exceeds the market consensus of 7 billion won.
Researcher Heo explained, "The exceeding of the consensus is due to the strong performance of the Shanghai branch since the beginning of the year," noting that new products for clients, which account for 85% of the revenue from the Chinese branch, received orders for initial quantities in the fourth quarter of last year and expanded their lineup in the first quarter of this year, reaching a monthly order volume at about 40% of last year's order volume.