With BGF Retail
to be relisted after a spin-off to transform into a holding company, Korea Investment and Securities suggested a “buy” recommendation and 240,000 won (US$219.94) target price.
It has been split into BGF, a holding company, and BGF Retail, an operating company, and will be relisted on Dec. 8. Although profits next year will dip slightly, investors should keep an eye on its virtual upturn in earnings, said analyst Eo Yeong-sang.
Its operating profit in the first nine months from convenience stores hiked 26 percent, thanks to expanding sales of fresh food and IQOS, while those of its rivals decreased, according to the analyst.
Its home meal replacement business is growing steadily and BGF Retail, with its dominance in major retail channels, is the most likely to develop new products and see its profits improve, underlined Eo.
By Hwang You-mee (email@example.com