IR광장
삼성증권_박은경, 김지혜_20181112
2018-11-29
● We reinstate coverage of Mode Tour Network at HOLD with a target price of
KRW26,000 (derived from a discounted cash flow valuation).
● Mode’s operating profit is likely to tumble 31% in 2018 due to weak travel demand.
Growth in overall demand should slow again next year, but operating profit should
rise 12% on a low base effect. Mode has chosen to focus on the package tour
segment, whose growth is expected to lag that of the free independent traveler and
hybrid segments. As a result, the firm has less room for longer-term growth than its
peers do.
● Shares are trading at P/E multiples last seen over 2012-2015, when outbound travel
demand grew by a single-digit percentage. Given no momentum in sight, shares
are likely to move range-bound for some time.
KRW26,000 (derived from a discounted cash flow valuation).
● Mode’s operating profit is likely to tumble 31% in 2018 due to weak travel demand.
Growth in overall demand should slow again next year, but operating profit should
rise 12% on a low base effect. Mode has chosen to focus on the package tour
segment, whose growth is expected to lag that of the free independent traveler and
hybrid segments. As a result, the firm has less room for longer-term growth than its
peers do.
● Shares are trading at P/E multiples last seen over 2012-2015, when outbound travel
demand grew by a single-digit percentage. Given no momentum in sight, shares
are likely to move range-bound for some time.