Handsome, SK Networks' share price in the fashion business acquisitions kill ssune

[Korea hyerin nine financial newspaper reporter Hyundai Department Store Group family of companies specializing in fashion Handsome recorded sinjeoga 52 weeks. Despite the April 28 acquisition of SK Networks fashion business news and stock price have finished raising the decline. Experts determined that the deficit is not positive business acquired Lee. SK Networks fashion division recorded a net loss last year.

6 days Handsome fell to ₩ 28,250, and recorded the 52 weeks sinjeoga. 24:10 Current Handsome -4.55% compared to previous trading in the securities market (1350 won), only two are trading down to 8350 won.

Recent three-day average trading volume of 10 000 Handsome am 20 weeks, the mean volume 60 days can be seen that the recent trading volume rose sharply when compared with 60,000 owners.

Handsome has entered into a definitive agreement for the acquisition of SK Networks fashion division April 28. The purchase price was 326.1 billion won last year, the dwaetjiman discussed in the lines, was determined to be 300 billion won through due diligence. With this acquisition was to operate the SK Networks Handsome 12 fashion sector brands.

Hyundai Department Store Group official emphasized that "we will maximize the synergy effect of the Handsome and fashion SK Networks' fashion will grow by more than 200 billion won investment in the core business over the next five years, he said.

On the other hand, the fourth quarter earnings announcement the same time, market experts have put the 10-day month, Handsome fashion division of SK Networks acquisition naenwatda a negative outlook.

Shinhan Investment Hee Jin Park researchers 'SK Networks fashion sector is estimated to last year's third quarter, total adjusted operating profit of about 4 billion won deficit, it said, "There is no Li deficit positive business argument' he said.

Hi Investment & Securities hands hyoju researchers' SK Networks expect the operating margin to the low profitability of the fashion division is to slow down to 7%, it said, "After extensive fashion businesses manage existing SK Networks Handsome arguments reflect costs associated with some adjustments etc. in the short term, he said, there are uncertainties in the argument. ' He predicted that "in the short term, price growth slowed and uncertainties after the acquisition is expected to flow boring.

Medium and long term investment attractiveness rating was also effective, but short-term volatility that is not pitch.

NH Investment & Securities researcher Lee Ji Young 'may increase the earnings volatility (due to acquisitions), he said,' SK Networks fashion division recorded sales of 600 billion won last year, net income deficit. Last year there was a long one-off costs, such as China reflects corporate corruption, but explained that this year is expected to be the key to whether profitability.

HMC Investment Securities sending lower edge researchers 'domestic demand sluggish and, SK Networks acquisition since it profitable requires time to improve' said, 'brand value Handsome in the domestic market, one still valid for the time being price is expected to remain flat' he said.

On the other hand, the Handsome significantly lower than the market consensus expected fourth quarter earnings last year and has recorded an earnings shock bar. 4Q11 consolidated operating profit of 26.7 billion won was lower than expected by (-17.5% YoY) to 36.9 billion won increased, sales also fell below the 251.8 billion won forecast by 2%, and recorded a 246 billion won (+ 11.6% YoY). In Shinhan Investment Corp. (₩ 38,000), Hi Investment & Securities (₩ 40,000), HMC Investment Securities (₩ 38,000), NH Investment & Securities (4 million) we were both adjusted down our target price of Handsome.



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