With Social Distancing Spreading, 'Jipkok'... Home Meal Replacement-Related Stocks Highlighted

[Asia Economy Reporter Park Jihwan] Due to the prolonged COVID-19 pandemic, stocks related to Home Meal Replacement (HMR) have gained significant attention. As social distancing measures spread and people refrain from dining out, convenient meals that can be easily prepared and eaten at home are becoming increasingly popular.

According to the Korea Exchange on the 22nd, Wooyang, a domestic food manufacturing company specializing in HMR, closed at 7,000 KRW based on the previous day's closing price. The stock price, which was 5,410 KRW at the end of last month, has risen 29.4% this month. Wooyang supplies HMR products to companies such as CJ CheilJedang and Pulmuone through an Original Equipment Manufacturer (OEM) method. Its main products include frozen hot dogs and cheese balls.

During the same period, the stock prices of other HMR companies, Foodwell and Boratial, surged by 65.1% and 69.3%, respectively. The average stock price increase of these HMR companies in December exceeds five times the KOSDAQ market's 7.68% rise.

HMR products have maintained steady growth, reflecting the increase in single-person households and changes toward simpler lifestyles. Recently, the benefits from COVID-19 have further contributed to solid performance. Wooyang's cumulative operating profit for the third quarter of this year was 5.6 billion KRW, a 65% increase compared to 3.4 billion KRW in the same period last year. Foodwell's operating profit also surged by 229% during this period.

There is a prevailing forecast that the HMR market expansion will accelerate further. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the HMR market size was 3.5 trillion KRW last year. aT predicts that the HMR market will grow to 5 trillion KRW in 2022. Furthermore, due to the spread of non-face-to-face culture caused by COVID-19 this year, the expansion speed of the HMR market size is expected to accelerate beyond previous estimates.

Kyung Minjung, a researcher at Mirae Asset Daewoo, stated, "The stay-at-home trend caused by COVID-19 is further accelerating the growth of the HMR market," adding, "The HMR market is now moving beyond a trend to become mainstream, and it could grow to a scale of 10 trillion KRW in 2023."

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