[Click eStock] "GreenPlus Undervalued Compared to Global Smart Farm Companies"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 11th that GreenPlus is undervalued compared to global smart farm companies, and thus a valuation rerating is expected. The target stock price was raised from 26,000 KRW to 30,000 KRW, and the investment opinion was maintained as Strong Buy (STRONG BUY).

GreenPlus signed an exclusive license agreement for smart farm supply in Australia and New Zealand with Farm 4.0, an Australian smart farm specialist company, the day before. The contract period is a long-term 10-year agreement with an option for an additional 20-year extension. Through this contract, GreenPlus will simultaneously carry out turnkey construction for the smart farms built by Farm 4.0 and supply licenses for core technologies.

Jae-yoon Kim, a researcher at KTB Investment & Securities, said, "The contract includes a minimum guarantee of a certain scale every year since 2021, so the first turnkey construction of a smart farm in Australia is expected to be reflected in sales within this year," adding, "Successful entry into the Australian and New Zealand markets will also increase the possibility of entering the UAE market."

He continued, "As the Rural Development Administration is developing a Middle East-customized greenhouse for the UAE as the lead agency for the desert smart farm demonstration project, the Middle East market, where the food self-sufficiency rate is below 10%, is expected to be a market larger than Australia," he added.

New entry into the Southeast Asian market is also anticipated. On the 27th of last month, the government announced agricultural and forestry ODA (Official Development Assistance) to support food security in developing countries. He said, "This includes plans to supply smart farms to Indonesia, Vietnam, the Philippines, Cambodia, and Uzbekistan," adding, "GreenPlus was selected for the national smart farm ODA project for Indonesia and is expected to enter the market in the first half of 2022."

He emphasized, "GreenPlus has made the start toward becoming a global smart farm company," and added, "Considering that most global smart farm companies target a single national market, the 2021E PER of 26.0 times is significantly undervalued compared to global smart farm companies."

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