[Click eStock] "Chong Kun Dang Holdings to Continue Growth with Diverse Products"

Hana Financial Investment Issues 'Buy' Rating and Target Price of 172,500 KRW... Closing Price on 4th at 110,500 KRW

Chong Kun Dang Health's 'Iker' (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Bo-ryeong] Jongkundang Holdings is expected to continue its growth trend based on a solid product portfolio.

According to Hana Financial Investment on the 6th, Jongkundang Holdings' consolidated first-quarter performance is forecasted to be sales of 187.4 billion KRW and operating profit of 27.5 billion KRW, representing increases of 12% and 36.3% respectively compared to the previous year.

Lee Jung-gi, a researcher at Hana Financial Investment, stated, "Jongkundang Holdings' external growth is expected to be driven by strong sales growth across all product lines of Jongkundang Health and an increase in OEM probiotic orders from affiliates of Jongkundang Bio, resulting in higher sales. Operating profit for the first quarter this year is projected to reach 26 billion KRW, a 28.3% increase year-on-year, due to growth in key subsidiaries Jongkundang Health and Jongkundang Bio, as well as a reduction in losses from other subsidiaries."

In particular, Jongkundang Health's growth is expected to stand out. The estimated performance for Jongkundang Health this year is sales of 414.4 billion KRW and operating profit of 71.2 billion KRW, increases of 17.1% and 18.5% respectively compared to the previous year. The researcher explained, "Sales growth is expected to be driven by balanced growth of products including probiotics. Jongkundang Health's flagship probiotic product 'Lactofit' is anticipated to see an increase in average selling price (ASP) due to premiumization through product renewal and a higher repurchase rate from existing customers."

Since the end of last year, Jongkundang Health has been diversifying its sales channels including online, duty-free shops, and H&B stores. Cost-effective products are sold through online and H&B stores, while high-end premium products are distributed via duty-free shops and telemarketing, strengthening sales capabilities through tailored sales channels for each product. The researcher added, "Sales of Promega, a strategic product this year, are expected to increase by 61.5% year-on-year to approximately 45.9 billion KRW, and the premium growth supplement 'Iker' is also expected to see significant sales growth."

Hana Financial Investment gave Jongkundang Holdings a 'Buy' rating with a target price of 172,500 KRW. The closing price on the 4th was 110,500 KRW.

This content was produced with the assistance of AI translation services.