(Report Briefing) Cape, ‘1Q24 Review: Shinjo >> AS Effect’ target price is 10,000 won – Meritz Securities – News Pim VRESP

(Seoul = Newspim) Robo News = Meritz Securities issued a new report on Cape (064820) on the 16th with an investment opinion of ‘BUY’, saying ‘1Q24 Review: Shinjo >> AS effect’, and set a target price of 10,000 won. Based on the previous day’s closing price, it can be interpreted that this stock’s stock price has an additional upside of 56.2% compared to the target price.

◆ Main contents of the Cape Report
Meritz Securities confirmed solid performance for Cape (064820) with sales of 19 billion won and operating profit of 4.9 billion won in the first quarter. However, an explanation is needed as to why operating profit margin fell by 4.3% points despite sales growth of +2.6%. The impact of the increase in sales volume of new-building cylinder liners, whose prices are relatively lower than those of after-sales service cylinder liners, to 60.5%. The expected significant downward stabilization of scrap prices was delayed until after the second quarter. ‘There are no other one-time factors that will affect the valuation, and the fair share price is maintained at 10,000 won.’

In addition, Meritz Securities recorded sales of KRW 19 billion (+2.6% YoY) on a separate basis, operating profit of KRW 4.9 billion (-12.1% YoY), and operating profit margin of +25.6%. The reason why pre-tax profit recorded KRW 7.6 billion (-57.2% YoY) was the base effect of profits and losses related to subsidiaries. Net profit recorded 7.6 billion won (-57.1% YoY). There are no one-off factors. Reflecting the first quarter performance, the separate forecast for 2024 was slightly adjusted to sales of KRW 80.6 billion (+8.1% YoY), operating profit of KRW 23.7 billion (+14.0% YoY), and operating profit margin of +29.4%.’

◆ Changes in target price just before the cape
– Target price maintained, 10,000 won -> 10,000 won (0.0%)

The target price of 10,000 won presented by Meritz Securities analyst Bae Ki-yeon for this stock is the same as Meritz Securities’ previous target price of 10,000 won issued on April 23, 2024.

This article was written in real time by an automatic article generation algorithm jointly developed by Newspim and Thinkful, a financial AI specialist company.

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