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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] IBK Investment & Securities maintained its investment opinion 'buy' and target price of 58,000 won for Shinsegae Food.
"Shinsegae Food's first-quarter earnings growth was limited," said IBK Investment & Securities Co. "The consolidated sales reached 381.8 billion won (+9.3%) and operating profit of 4.6 billion won (+1.7%). Despite high external growth, profitability is somewhat disappointing."
"The performance growth was due to the increase in sales of group-oriented manufacturing products, the expansion of the distribution network of SCK channels, the increase of SKU (the number of types of products), the increase of drinking water for group meals, and the volume of food material distribution," IBK Investment & Securities said. "It also affected the improvement of the profit and loss structure due to the efficiency of no-brand stores."
"The improvement in performance will expand further in the second quarter due to a slowdown in the restaurant economy, and it is expected to improve profitability due to the stabilization of cost ratio, increase supply sales due to the expansion of the group's distribution network, and make the restaurant business more efficient," said IBK Investment & Securities Co. "Group meals are also positive to see an increase in drinking water due to the worsening consumption economy."
Shinsegae Food estimated sales of 392.6 billion won (+6.1%) and operating profit of 10.4 billion won (+30.4%) in the second quarter.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
