GreenPlus Enters Australian Market...Expecting Growth in Smart Farm Exports

[Asia Economy Reporter Park Ji-hwan] IBK Investment & Securities stated on the 21st that GreenPlus continued to show significant sales growth in the second quarter, but operating profit sharply declined. However, it evaluated that export growth is expected next year through entry into the Australian smart farm market. No investment opinion or target price was separately presented.

Researcher Kim Tae-hyun of IBK Investment & Securities said, "GreenPlus's consolidated sales in the second quarter were 24 billion KRW, and operating profit was 1.2 billion KRW, representing a 40.3% increase in sales and a 39.5% decrease in operating profit compared to the same period last year." He explained that while the demand for smart farm construction domestically and internationally increased, resulting in external growth, overall cost ratio increases and poor performance of the subsidiary Green Fish Farm worsened profitability. Researcher Kim said, "Although smart farm supply expanded, profitability declined due to rising raw material prices."

GreenPlus benefited from a favorable business environment due to government-level smart farm industry promotion policies, and with sales related to the Smart Farm Innovation Valley reflected, domestic greenhouse construction sales increased by 95.6% year-on-year to 11.8 billion KRW. However, operating margin shrank from over 10% in the first quarter due to rising prices of raw materials such as aluminum and iron.

The subsidiary 'Green Fish Farm,' engaged in eel farming, recorded an operating loss of 100 million KRW. Researcher Kim analyzed, "The causes of poor performance are the recession in the dining-out market, falling eel prices, and increased mortality rates due to viruses."

However, export growth is expected next year with entry into the Australian smart farm market. Earlier on the 19th, GreenPlus signed a public distribution contract with an Australian partner company, plans to proceed with the main contract in the fourth quarter of this year, and aims to start construction of a 12,000-pyeong strawberry farm in Australia by March next year.

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