[Click eStock] "Harim Holdings, Momentum Awaiting to Resolve Undervaluation"

[Asia Economy Reporter Eunmo Koo] An analysis suggests that attention should be paid to two momentum factors that will resolve the undervaluation of Harim Holdings.

Harim Holdings has actively pursued business expansion and overseas advancement to enhance the competitiveness of its core business sectors. The feed business, which can be considered the group's mainstay, is pioneering overseas markets, while the food business, which needs to expand its business scope, is focusing on strengthening its capabilities. Kim Jang-won, a researcher at IBK Investment & Securities, stated in a report on the 7th, "Even though it is an industry less affected by the economy, COVID-19 has been a variable that burdens both supply and demand, and considering the time needed for investment and business stabilization, profitability will remain under pressure for the time being."

Nevertheless, he added that it is necessary to understand this as a process of change for growth momentum. Researcher Kim evaluated, "Recently, the holding company transferred overseas subsidiaries in which it held shares to core subsidiaries closely related to the business, which was a preliminary step to strengthen competitiveness."

He also emphasized the need to focus on two growth drivers. First, attention should be paid to the home meal replacement (HMR) business of Harim Industry and HS Food. Researcher Kim explained, "They completed construction of all factories capable of producing HMR-related products such as Hetbahn (ready-to-eat rice), noodles, broth, and processed meat last year and have started trial operations, making commercialization possible from this year." Additionally, he highlighted the development of the Yangjae-dong freight terminal site, for which a letter of intent for investment in the urban high-tech logistics complex was submitted in August last year. Researcher Kim said, "The development plan has progressed five years after purchasing the site in 2015, and development will begin as soon as the approval process is completed. Considering its accessibility and usability in the metropolitan area, the added value is high, so expectations are great."

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