"Korea Zinc Seen Hitting 1.9 Million Won" Operating Profit Jumps 83%... APR's 'Operating Profit Seen at 140 Billion Won' Lifts Target Price to 500,000 Won [Stocktopia]

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[The Financial News] Here is a roundup of major securities firm reports as of the morning of April 21.
Korea Zinc is expected to post an 83% year-on-year increase in operating profit this year, driven by stronger precious metal prices and a structural improvement in earnings quality. APR is expected to benefit from the continued impact of its European distribution agreement signed last year, with high growth in European sales set to continue this year and support earnings. KT&G was also assessed as entering a phase in which earnings quality is improving through growth centered on overseas cigarettes, while valuation can increasingly be based on per-share value.
\r\n\r\n◆Korea Zinc (010130)― Shinhan Securities / Analyst Park Gwang-rae
- Target price: 1.9 million won (up 11.8% from 1.7 million won) | Previous close: 1,665,000 won
- Investment opinion: Buy
Shinhan Securities said Korea Zinc's operating profit this year will surge 82.9% from a year earlier to 2.253 trillion won, and raised its target price to 1.9 million won. Analyst Park Gwang-rae said that for every $1 increase in silver prices per ounce, annual operating profit rises by 10 billion to 12 billion won. Assuming an average silver price of $80 this year, silver alone could add about 400 billion won in profit compared with last year. He added that precious metal demand will drive earnings in the near term, while copper capacity expansion and the reflection of a premium for its U.S. smelter after 2027 will be the key factors supporting further share price gains.※ Smelter premiumA factory that extracts pure metal from ore mined from a mine is called a smelter. A smelter premium refers to an additional fee for this processing service. As advanced economies such as the United States have recently moved to reduce dependence on China, the value of reliable non-Chinese smelters has been rising. Korea Zinc is one of the world's largest non-ferrous metal smelters and is well positioned to benefit from this premium.
\r\n\r\n◆APR (278470)― Korea Investment & Securities / Analyst Kim Myung-joo
- Target price: 500,000 won (raised from 275,000 won) | Previous close: 414,500 won
- Investment opinion: Buy
Korea Investment & Securities forecast that APR's first-quarter sales will rise 113.9% from a year earlier to 569 billion won, while operating profit will jump 158.6% to 141.1 billion won. Analyst Kim Myung-joo said the impact of distribution agreements signed last year with local European distributors will continue this year, with rapid growth in European sales driving earnings. He also noted that the brand is strengthening in the United States, where the Zero Pore Pad has ranked No. 2 in the Amazon Beauty & Personal Care category.※ B2B·B2CB2B (Business-to-Business) refers to transactions between companies, while B2C (Business-to-Consumer) refers to sales made directly to consumers. APR is using both channels in Europe, supplying products in bulk to local distributors through B2B and selling directly to consumers on Amazon through B2C. B2B is profitable because it moves large volumes at once, while B2C helps build brand awareness directly. Using both channels together can strengthen both sales and brand power.
\r\n\r\n◆KT&G (033780)― Yuanta Securities Korea / Analyst Son Hyun-jung
- Target price: 210,000 won (up 10% from 200,000 won) | Previous close: 171,500 won
- Investment opinion: Buy
Yuanta Securities Korea raised its target price for KT&G to 210,000 won, reflecting the company's decision to cancel all treasury shares and the improvement in its profit structure centered on overseas cigarettes. Analyst Son Hyun-jung said earnings per share are expected to rise mechanically by about 10% as the number of shares declines, and that confidence in shareholder returns has strengthened as the company has made its policy direction clear by buying back treasury shares and canceling them in full.
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sms@fnnews.com Sung Min-seo Reporter