[Featured Stock] Lotte Wellfood Falls for 5 Consecutive Days... New Low

Lotte Wellfood continued its decline for the fifth consecutive day, hitting a 52-week low during trading.

As of 9:43 a.m. on the 16th, Lotte Wellfood was trading at 102,200 KRW, down 800 KRW (0.78%) from the previous day. During the session, the price fell to 102,000 KRW, breaking the 52-week low.

The prolonged cost burden is expected to have caused poor performance in the fourth quarter of last year, leading to continued weakness in the stock price. Shinhan Investment Corp. forecasted that Lotte Wellfood's fourth-quarter sales would decrease by 0.2% year-on-year to 977.2 billion KRW, and operating profit would drop 37% to 18.4 billion KRW, missing the consensus (average securities firm forecast) by 28%. Researcher Jo Sang-hoon of Shinhan Investment Corp. explained, "The prolonged cost burden, combined with consumer downturn and one-time labor cost reflection, led to poor results," adding, "Since the second half of last year, the stock price has been in a correction phase due to slowed domestic and overseas growth and prolonged cost burdens." Reflecting the decline in peer valuation and downward revision of domestic earnings estimates, Shinhan Investment Corp. lowered Lotte Wellfood's target price by 17% to 150,000 KRW from the previous level.

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