[Edaily Reporter Kim Hyung-il ] EUGENE INVESTMENT & SECURITIES maintained its “Buy (BUY)” rating and target price of 70,000 won for GOLFZON Co., Ltd.(215000), noting that while second-quarter earnings fell short of market expectations due to sluggish domestic operations, growth in its overseas business continues.

On the 7th, Park Jong-seon, an analyst at EUGENE INVESTMENT & SECURITIES, stated, “On a consolidated basis, second-quarter revenue was 101.2 billion won and operating profit was 6.6 billion won, down 16.4% and 66.5%, respectively, year-over-year,” adding, “These figures fell short of the market consensus by 13.1% and 53%, respectively.”

Analyst Park explained, “Revenue from both franchise and non-franchise businesses declined due to a slowdown in new store openings and an adjustment in golf demand resulting from diversification in leisure preferences. Additionally, GOLFZON Co., Ltd.’s Driving Range (GDR) business continued to underperform as the influx of new golfers slowed.” He added, “Increased costs associated with the expansion of overseas operations and intensified sales and marketing activities also contributed to the decline in profitability.”

However, he noted that the overseas business has continued to post revenue growth for six consecutive quarters compared to the same period last year. The number of global locations increased from 3,696 in the second quarter of last year to 4,385 in the second quarter of this year, and overseas revenue also rose by 7.4%, from 25.3 billion won to 27.2 billion won. In the U.S., revenue grew by 14.7% driven by expanded sales of new screen golf simulators (GS) and new screen golf systems (NS), while in Vietnam, revenue expanded by 35.8% due to the expansion of GS and NS trade-in programs.

Analyst Park stated, “GOLFZON Co., Ltd.’s third-quarter consolidated revenue is expected to be 113 billion won, with operating profit at 10.2 billion won, indicating that the year-over-year decline will gradually narrow,” adding, “The launch of new products will help mitigate the decline in revenue from domestic franchise and non-franchise operations, while the overseas business will continue to grow.”

He further assessed, “The current stock price, based on a price-to-earnings ratio (PER) of 6.8 times against projected 2026 earnings, offers attractive valuation compared to the average of domestic peers and similar companies (11.4 times).”