Samsung Securities analyzed on the 21st that ECHOMARKETING has regained the top position in the athletic leisure brand for the first time in about five years based on second-quarter sales and is securing mid- to long-term growth as it seeks to enter the U.S. market.
It raised the target stock price from the previous 10,800 won to 16,500 won while maintaining its investment opinion of "buy." The closing price of ECHOMARKETING on the previous trading day was 13,610 won.
ECHOMARKETING is showing growth as it announced surprising earnings results for the second quarter of this year. Choi Min-ha, a researcher at Samsung Securities, noted, "Despite a challenging domestic advertising environment, the performance of integrated marketing agencies has expanded, and client contract volumes have increased."
In the second quarter of this year, ECHOMARKETING recorded separate revenues and operating profits of 17.2 billion won and 9.6 billion won, respectively, marking increases of 42.6% and 91.2% compared to the previous year. Researcher Choi predicted, "Based on market references, both the increase in existing advertisers' volumes and new advertisers' contracts are growing, and I expect the growth trend to continue in the second half of the year." He also noted the importance of enhancing productivity by introducing artificial intelligence (AI) agents.
However, Daily & Co. recorded operating losses for three consecutive quarters. It seems likely to strengthen major brands such as Monge and Clock in the second half while promoting cost efficiency.
Samsung Securities projected that in the case of Andar, it will expand its product categories while broadening the target age range and penetrating overseas markets to increase market size.
Researcher Choi said, "Andar has expanded its product range beyond athletic wear to include underwear and running shoes, broadening its target gender and age ranges with the release of products for men and kids, as well as its core female customers." He also found the increase in brand preference and repurchase rates encouraging.
He commented, "Andar is actively venturing into overseas markets such as Singapore, Japan, and Australia, and the entry into the U.S. market is expected as early as the third quarter," adding, "Considering the size of the athletic leisure market in the West, including the U.S., securing a presence in the market is essential for mid- to long-term growth."
He added, "The movements to strengthen shareholder returns, including the buyback and cancellation of treasury shares and the expansion of dividends, are also positive."