[Click eStock] "SPC Samlip Expands Online Channel Strategy... Expecting Strong Earnings"

Samsung Securities Report

[Asia Economy Reporter Minji Lee] Samsung Securities maintained a buy rating and a target price of 85,000 KRW for SPC Samlip on the 10th, expecting strong performance again this year.

In the fourth quarter of last year, SPC Samlip recorded sales and operating profit of 675.1 billion KRW and 21.7 billion KRW, respectively, marking growth of 0.4% and 17% compared to the previous year. Thanks to solid sales growth in its core business and efforts to reduce fixed costs, the company achieved profit growth for two consecutive quarters following the previous quarter.

The bakery segment saw a 22% increase in operating profit year-on-year due to recovery in major category sales and strong sales of steamed buns. The food segment's sales grew by 8% driven by category expansion and efforts to utilize online channels. With high growth in fresh food, the operating rate of major production bases all exceeded 70%, resulting in a 13% increase in operating profit. The distribution specialist subsidiary GFS experienced a 1% decline in sales due to sluggish non-captive (external sales) revenue and the restructuring of the meat business. Pre-tax profit was weaker than expected due to impairment losses of 1.9 billion KRW on directly operated stores.

SPC Samlip is diversifying its business portfolio from its traditional bakery-focused operations to include fresh food, meat processing, rest areas, and new businesses. Researcher Sanghoon Jo of Samsung Securities said, “There may be short-term trial and error, but in the long term, the company can achieve high stability,” adding, “The new businesses being pursued reflect consumer trends and are positive in the long run, with expected synergies with existing businesses.”

The company is also expanding its online channel strategy. To respond to the rapidly growing online channel, the company expanded dawn delivery channels, broadened categories, and launched strategically tailored products for each channel, resulting in related sales exceeding 10 billion KRW for the first time in the fourth quarter of last year. Researcher Jo stated, “The company is introducing NPB brands for each e-commerce channel, and its differentiated online channel strategy is positive for the company,” adding, “It will serve as a foothold for the food business’s future B2C expansion.”

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