Han Woo observed in a report presented at the Korean stock market on the 28th that the domestic consumer goods industry is facing short‑term uncertainty. Specifically, he noted that the overall market impact of exchange‑rate fluctuations is limited and that the related companies’ performance burden is relatively light.
According to the report, Korean Kolma holds more than 80 % of the domestic sales share, so strong currency has almost no effect on revenue and operating profit. Therefore Han Woo evaluated Korean Kolma as one of the first companies whose performance levels are rising in consumer goods sector. If the current export flow continues until year‑end, Q4 performance will likely rise again, which is a positive signal for stock price adjustments.
Researcher Kim Myung‑ju of Han Woo emphasized that “the sector has seen the largest share‑price decline over the last month due to new accounting standard (IFRS 18) and strong currency fluctuations; thus APAL also deserves attention.” He added that “because of strong currency, the company's performance estimates and stock adjustments were unfavorable; companies with performance burden are disadvantaged.”
Han Woo also noted that brands like MediCube have lower 12‑month forward P/E ratios than average. “Because of various variables the sector’s investment sentiment is not good, APAL’s price shows short‑term volatility but no change in overall performance, thus the price will rebound again,” he added.
(Contact: Han Kyeong dot com reporter 2su@hankyung.com)