[Click eStock] "Daesang Estimates 6% Operating Profit Growth in 2025"

Hana Securities estimated on the 26th that Daesang's consolidated operating profit for 2025 will increase by 6%.

Hana Securities estimated Daesang's consolidated sales and operating profit for the first quarter of this year to be 1.0632 trillion KRW and 50.8 billion KRW, respectively. These figures represent increases of 1.8% and 6.6% compared to the same period last year.

Sim Eun-joo, a researcher at Hana Securities, explained, "Sales in the food (processed + B2B) sector are expected to remain at last year's level," adding, "The high base last year is due to the timing difference in reflecting Lunar New Year gift sets and sluggish domestic demand."

She continued, "In the materials sector, the weakness in starch and sugar is expected to be offset by lysine," noting, "Lysine is benefiting from the anti-dumping duties imposed by Europe on Chinese products, which is becoming apparent. Sales are expected to increase by double digits compared to last year, and profitability is expected to turn positive."

Daesang's consolidated sales for this year are projected at 4.3837 trillion KRW, with operating profit at 189 billion KRW. These represent increases of 3% and 6.1%, respectively, compared to the same period last year.

Researcher Sim analyzed, "Considering the domestic economic situation, the improvement in profitability in the food sector is expected to be limited," and added, "The degree of profitability improvement in lysine within the materials sector will be the key to improving consolidated earnings."

The buy investment opinion is maintained, with a target stock price of 35,000 KRW suggested.

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