Hanwha Securities, Jeju Air target price increases... “Successful turnaround in the third quarter”
Quick Look
- Hanwha Investment & Securities raised Jeju Air's target stock price from 6,500 won to 7,500 won in accordance with its forecast for next year's operating profit growth.
- Jeju Air turned a profit in the third quarter with an operating profit of 54.9 billion won, and the previous day's closing price was 5,720 won.
AI-generated summary
Why It Matters
Jeju Air's operating profit on a separate basis in the third quarter was KRW 54.9 billion, turning into a surplus compared to the same period last year (-KRW 59.9 billion), which is 7 times higher than the market consensus.
Hanwha Investment & Securities raised its target stock price for Jeju Air [089590], which succeeded in turning a profit in the third quarter of this year, from 6,500 won to 7,500 won on the 4th, saying that its operating profit will continue to grow next year.
The closing price of Jeju Air the previous day was 5,720 won.
Researcher Park Soo-young analyzed in the report that the reason Jeju Air's operating profit in the third quarter greatly exceeded market expectations was due to the stabilization of fuel costs and the won/dollar exchange rate compared to the previous quarter and the increase in the proportion of purchased aircraft.
Jeju Air announced the previous day that its operating profit on a separate basis in the third quarter was KRW 54.9 billion, turning into a surplus compared to the same period last year (-KRW 59.9 billion). This is a performance that exceeds the market consensus (average estimate) by 7 times.
Researcher Park said that the market forecast for Jeju Air's performance in the fourth quarter of this year and next year is still conservative, and raised the forecast for next year's annual operating profit from 138 billion won to 145 billion won.
He said that although the recent short-term surge in stock prices may be burdensome, there is still upside potential, and that he recommends a strategy of buying in response to each correction.
What to Watch
AI outlook — possibilities, not facts
When Jeju Air stock price adjusts, a buy response strategy will be effective.
Possible · Within weeks
Open Questions
- Jeju Air’s specific performance improvement factors for next year
- Future stock price outlook due to target price increase
