[Click eStock] Hyundai Green Food, Strong Growth Trend 'Aggressive Buy'

On the 8th, IBK Investment & Securities maintained its investment opinion of 'Strong Buy' and a target price of 25,000 KRW for Hyundai Green Food. Although high growth is expected as the earnings growth trend continues into the second quarter, the current stock price level (valuation) is considered cheap. The current stock price as of the closing on the 7th is 12,210 KRW.

Nam Seong-hyun, a researcher at IBK Investment & Securities, stated, "Hyundai Green Food's sales for the second quarter of this year are estimated to be 520 billion KRW, a 17.1% increase compared to the same period last year, and operating profit is estimated at 31.6 billion KRW, a 43.3% increase." He added, "Operating profit is expected to increase by 18.8% compared to the first quarter." He further explained, "The basis for estimating positive earnings is the expanded contribution of major business sites due to increased group catering, the effect of price increases at some clients, and the expected increase in military catering volume."

The second quarter is a season when the number of operating days at major business sites increases. In addition, the effect of price increases at major business sites is likely to continue, and further price increases at additional business sites are expected, which will give more momentum to the improvement of related operating performance.

Attention should also be paid to the potential expansion of overseas sites. Overseas catering sales in the first quarter of this year recorded 24 billion KRW. Despite the sluggish performance of the China corporation, improvements in the US and Mexico corporations are driving overall growth. In particular, the performance of the Georgia corporation is significant. This is due to relatively high prices and the high possibility of new demand arising from the completion of Hyundai Motor's electric vehicle factory. Long-term expansion of the Hyundai EV line is expected.

Researcher Nam said, "Hyundai Green Food is focusing on its US corporation based on the know-how gained from operating group catering sites such as the Kuwait bridge construction," and added, "As the number of sites increases in the future, it will settle as a business division that offsets the slowdown in the domestic market."

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