[Click eStock] "Binggrae Earnings Surprise Continues... Target Price Maintained"

Sangsangin Securities maintained a target price of 90,000 KRW and a buy rating for Binggrae on the 15th, stating that "the company continued its year-round earnings surprise in the third quarter of this year."

On the day, researcher Kim Hyemi of Sangsangin Securities said, "Binggrae's consolidated third-quarter results recorded sales of 434.2 billion KRW and operating profit of 65.4 billion KRW," adding, "It continued the ongoing earnings surprise throughout the year, and combined with the peak season effect, achieved an all-time high level."

The high growth trend in refrigerated and frozen exports continued. Domestic frozen sales increased by 12% compared to the same period last year due to the summer peak season heatwave and late heat, leading to improvements in sales and profitability.

Looking at detailed sales by segment, the refrigerated segment grew by 7% compared to the same period last year, while the frozen and other segments grew by 12%. Refrigerated exports grew rapidly by 44% year-on-year, supported by increased sales of banana-flavored milk in China, similar to the previous quarter. Domestic sales grew by 4% compared to the same period last year. The frozen and other segments saw domestic sales increase by 12% and exports by 17% compared to the same period last year due to increased peak season demand.

Regarding the performance of consolidated subsidiaries, Haitai Ice Cream recorded sales of 80 billion KRW and net profit of 13.4 billion KRW, increasing by 16% and 139% respectively compared to the same period last year. Overseas subsidiaries in Shanghai and the United States grew by 47% and 19% respectively compared to the same period last year. However, during this period, Vietnam experienced a 26% decline due to deteriorating consumer conditions and a high base effect.

Researcher Kim said, "Profitability of overseas subsidiaries improved across all corporations, with combined net profit growing 253% year-on-year to 2.7 billion KRW, and net profit margin expanding by 7.2 percentage points," adding, "Although the stock price has risen 46% since the beginning of the year, it is still at an absurdly low level compared to the excellent performance that achieved continuous surprises." He further noted, "It is ironic that concerns about a tough base for next year are being raised without any prior increase," and added, "Growth is expected to continue next year due to steady export growth and price pass-through of cost burdens."

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