Dalba Global shares climbed in intraday trading on April 23, buoyed by expectations that a planned share buyback and cancellation will boost shareholder value and by forecasts of strong first-quarter results.
According to the Korea Exchange, Dalba Global was trading at 230,000 won as of 1:47 p.m., up 17,000 won, or 7.98%, from the previous session.
The company said the previous day it will acquire about 20 billion won worth of its own shares through a trust contract to enhance shareholder value and fund stock compensation for employees.
Investor expectations for first-quarter earnings also supported the stock.
In a recent report, Shinyoung Securities analyst Lee Gyo-seok said sales in North America and Europe are expected to rise 200% from a year earlier, driving results. He forecast domestic sales would increase 15% year over year to 57.7 billion won, citing a more diversified channel mix including Olive Young, home shopping and Naver Smart Store.
Lee said the company has continued double-digit domestic growth even as competition has intensified and growth has slowed for other major indie brands, adding that expanded sales of multi balm and double cream products, which are less affected by seasonality, could further improve performance.
Shinyoung expects first-quarter revenue to rise 46% from a year earlier to 166.4 billion won and operating profit to increase 29% to 38.8 billion won, for an operating margin of 23.3%. The brokerage raised its target price to 240,000 won from 200,000 won.
* This article has been translated by AI.
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