[THE INVESTOR] SPC Samlip may begin to improve from the second quarter and now is the right time to purchase it stocks, said KB Investment and Securities on June 4, maintaining a “buy” recommendation and 170,000 won (US$158.73) target price.
Its stock price has fallen 27.2 percent since the beginning of this year. While earnings have been burdened by initial costs of operating a new factory and lowering the sale price of its milling affiliate, it will be able to regain from the second quarter. Its cash cow bread-making sector is growing while declining egg prices are helping stabilize costs, said analyst Park Ae-ran.
Its new factory has crossed the break-even point in April and food distribution section’s expanding external clients and raising margins would also help boost its earnings. Its revenue this year will increase 6.6 percent on-year to 202.6 billion won and operating profit by 23.1 percent to 67.3 billion won, she estimated.
By Hwang You-mee (glamazon@heraldcorp.com)