[THE INVESTOR] Maeil’s earnings growth will be limited, said KB Investment and Securities on Dec. 29, maintaining a “buy” recommendation and lowering the target price to 87,000 won (US$81.50) from 98,000 won.
Recovery of formula milk in the domestic market is slow and growth momentum of major products has weakened, noted analyst Park Ae-ran.
Cupped coffee and processed milk are sluggish and raw material price of imported cheese is rising, said the analyst.
Its profits have been leaping since 2015 but the growth will be slower, forecast Park.
Growth of organic products, average price rise of cupped coffee and recovery of formula milk exports to China will maintain its stable earnings, she said, estimating that its revenue and operating profit next year will come in at 1.37 trillion won and 78.1 billion won, respectively.
By Hwang You-mee (firstname.lastname@example.org)