F&F(007700): Noticeable profit improvement
- 2Q06 comment
- Revise down TP to KRW7,300, but reiterate BUY
> F&F surprised the market by largely improving its profitability.
> 2Q06 OP and RP increased 81.5% y/y and 75.3% y/y respectively to KRW6.9bn and KRW7.0bn on sales of KRW52.3bn(-6.2% y/y).
> The company has been beating the sector average OP margin of 11.3% for three consecutive quarters.
> Revise down FY06 sales estimate, but raise OP and NP estimates to reflect improving fundamentals.
> We discounted 20% to the sector average PER 7.5x to get our target multiple.
> TP is down to KRW7,200 from KRW8,000. |
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