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THE INVESTOR]
Lotte Confectionary’s third-quarter earnings will not be able to meet market expectations, according to Korea Investment and Securities on Oct. 24.
The securities firm adjusted the target price to 250,000 won (US$219.11) from 290,000 won, forecasting its third-quarter operating profit will rise only 2.6 percent, as overseas affiliates including Rakhat in Kazakhstan are yet to show improved performance due to the depreciated local currencies.
From the fourth quarter, however, operating profit will significantly increase, as average selling price hike will boost the sales volume, said Lee Gyeong-ju, an analyst at Korea Investment and Securities.
“As the issues regarding the ownership have been settled, Hotel Lotte is more likely to go public in the first half of 2017,” added the analyst, “and the stocks of affiliates which currently amounts to 1.5 trillion won, accounting for 59 percent of the total market value, will improve.”
By Hwang You-mee (
glamazon@heraldcorp.com)
