Stock Price of Hyundai Green Food After Demerger 'Positive Momentum' ... "Expecting Corporate Value Reassessment"

Hyundai Green Food, Declines After Re-listing Then Rebounds... Breaks Opening Price
Market Analysts Highlight "Company Value Reassessment + Core Business Fundamental Growth"

The stock price of Hyundai Green Food, which has completed a spin-off, is drawing attention as it continues an upward trend despite a bearish market following its re-listing. Although the stock price declined immediately after re-listing, positive market signals suggesting a revaluation of the company's value due to the spin-off have led to a rebound.

According to the Korea Exchange on the 3rd, as of 1:42 PM, Hyundai Green Food was trading at 13,160 KRW, up 510 KRW (4.35%) from the previous trading day. During the session, it rose as high as 13,310 KRW. This marks two consecutive trading days of gains.

Since its spin-off re-listing on the 10th of last month, Hyundai Green Food's stock price fell for three consecutive days but has since shifted to an upward trend. On the first day of re-listing, it dropped more than 12%, followed by declines of over 2% on each of the next two days, but then showed a rebound, surpassing the opening price.

The opening price of Hyundai Green Food was set at 12,990 KRW, approximately 80% higher than the appraised price of 7,250 KRW, reflecting expectations that the previously undervalued company would be revalued through the spin-off.

Regarding this stock price movement, the market views that despite the high asset value before the spin-off, the company was not properly valued, and the expectation of revaluation through the spin-off has influenced the trend.

Sim Eun-joo, a researcher at Hana Securities, stated, "The spin-off of Hyundai Green Food is expected to lead to a revaluation of the business company's value," adding, "Before the spin-off, the company held subsidiaries engaged in furniture business, heavy equipment manufacturing, and corporate sales, which meant the food service business was not properly valued. However, after the spin-off, a revaluation of corporate value is expected."

Researcher Sim also added, "Since operating cash flow of about 50 billion KRW per year is expected, growth will be pursued through mid- to long-term expansion of related business investments," and "an increase in dividends is also anticipated."

Nam Sung-hyun, a researcher at IBK Investment & Securities, also analyzed, "Despite high asset value before the spin-off, poor performance of building materials affiliates and some subsidiaries limited the increase in corporate value," and "after the spin-off, asset value will be incorporated into the holding company, but excluding consolidated subsidiary results may highlight the strong fundamentals of the core business."

Lee Kyung-eun, a researcher at KB Securities, also predicted, "Before the spin-off, the company held multiple affiliates as subsidiaries, so the food service business was not properly valued," and "therefore, a revaluation of corporate value is expected after the spin-off."

The securities industry is particularly paying attention to the fundamental growth of Hyundai Green Food's core business going forward.

Researcher Lee Kyung-eun said, "Performance improvement is expected due to an increase in the number of meals in the group catering business and expansion of overseas operations," adding, "As the industry recovers, daily meals have returned to around 300,000, demand for cafeteria meals is increasing, and with expected expansion of domestic companies' investments in the Middle East and the United States, there is a high possibility of additional orders for project and factory catering."

Researcher Nam Sung-hyun also forecasted, "Performance growth will continue due to increased meal numbers from higher operating rates in the automobile and shipbuilding industries and margin improvement from increased CK operating rates," and "in the mid- to long-term, sales growth in overseas business units, as well as continued growth in Gritting (B2C) and CK (B2B), will steadily enhance the core business fundamentals."

Researcher Sim Eun-joo also noted, "With lunch inflation becoming more pronounced, the catering sector has been significantly recovering since last year," and "the food ingredient distribution sector will maintain steady growth through expansion of dining franchise clients."

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