Equity Analysis /
South Korea

KR : F&F - MLB China: Unshaken topline growth

    Jiwon LEE
    CGS-CIMB
    25 March 2022
    Published by

    We believe news of the Covid-19 lockdown in Shenzhen and China’s support for Russia led to a sharp fall in FF’s share price on 14-15 Mar (-14%). Despite rising uncertainty, we think the immense popularity of MLB brand in China will drive MLB’s China/total sales growth of +67%/+23% yoy in FY22F. We still project FY22-23F EPS growth of 21-23% and reiterate Add on FF with unchanged TP of W1,060,000, amid strong earnings growth momentum.