"Target Price Raised Thanks to Retail and Materials Subsidiary Performance"[Click e-Stock]

Heungkuk Life Insurance Raises BGF Target Price

From 6,000 Won to 6,500 Won

"Driven by BGF Retail and Subsidiaries"

Heungkuk Life Insurance announced on May 13 that it is maintaining its "Buy" investment opinion on BGF and raising its target price from 6,000 won to 6,500 won.

Park Jongryeol, a researcher at Heungkuk Life Insurance, stated, "Annual operating profit is expected to increase steadily, driven by the earnings turnaround of its main subsidiary, BGF Retail, and performance improvement in subsidiaries such as BGF Eco Materials. If efforts to expand shareholder returns are combined, we believe there is potential for further stock price revaluation."

Park projected that BGF's performance this year will be at a solid level, with sales of 474 billion won and operating profit of 63.1 billion won. He added, "With first-quarter results meeting initial expectations, BGF is expected to continue generating stable operating profit throughout the year."

He anticipated that improvements in the convenience store business would lead to a gradual increase in separate income such as dividends and rental revenue, with equity method gains from BGF Retail's improved performance also having an impact. He further noted that BGF Eco Materials, a consolidated subsidiary, is likely to see both revenue and operating profit growth.

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