"Haechunmiup, Highlighted Attraction of Undervalued Stock Price"

[Asia Economy Reporter Ji-hwan Park] Hana Financial Investment evaluated on the 3rd that the recent stock price of Haechun Miup appears to be undervalued and at an attractive level for investment.

Seunghye Baek, a researcher at Hana Financial Investment, stated, "After the Q2 earnings announcement, the stock price formed a yearly low before surging due to rumors of a price increase at shipment," adding, "Although it has rebounded 27% from the low point, the recent stock price (110 yuan) compared to the early-year high (165 yuan) still appears to be at an attractive level for investment." The reasons for the Q2 earnings slump included a high base effect, sluggish recovery of offline dining businesses due to the resurgence of COVID-19, reduced orders caused by high inventory levels in the first half of the year, rising raw material costs such as soybeans and packaging materials, and intensified competition in low-priced products due to the growth of group-buying platforms.

Researcher Baek explained, "Haechun Miup is a strong food company with overwhelming brand power in the Chinese seasoning market, consistently demonstrating steady earnings growth and stock price appreciation," and added, "The stock price adjustment this year due to various special negative factors clearly presents a good buying opportunity from a long-term perspective."

Although the rumor of a shipment price increase has been officially tentatively denied, the stock price is expected to rebound in the fourth quarter of this year as negative factors for next year are diluted and a performance turnaround is anticipated.

Researcher Baek said, "Online sales increased significantly by 17% year-on-year, and in June this year, a dedicated department for the rapidly growing group-buying platform was established, adopting a more proactive approach than before," adding, "Following the launch of online group-buying exclusive products, they are implementing online-tailored strategies such as establishing an online pricing system, so accelerated growth of online channels is expected in the second half of the year."

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