[Click eStock] "Binggrae, Warming Weather... Expected Stock Price Rise Momentum"

On the 28th, SK Securities maintained a buy rating and a target price of 70,000 KRW for Binggrae, expecting stock price momentum driven by second-quarter earnings expectations this year, based on the seasonality of past stock prices.

Binggrae's second-quarter revenue is expected to increase by 10.7% year-on-year to 403.5 billion KRW, and operating profit is forecasted to rise by 9.5% to 23.1 billion KRW. This growth is lower than the year-on-year growth rate in the first quarter, which is explained by the fact that price increases began at the end of the first quarter, making the year-on-year quarterly base different. Considering the number of rainy days and highest temperatures from April to June this year, it is estimated that sales volume increased month-over-month.

Park Chansol, a researcher at SK Securities, explained, "Currently, we are approaching the annual peak season in the third quarter, and looking at Binggrae's past performance trends, the ice cream division drives the company's overall results. The second quarter, when temperatures rise, and the third quarter peak season performance determine the annual results of the ice cream division."

He added, "When dividing growth into P and Q, the contribution of P is expected to be high, but mild weather and a not-too-long rainy season create optimal conditions to boost sales of Binggrae's ice cream products. Therefore, it is necessary to monitor the peak season weather, which could lead to changes in future earnings estimates."

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