April 25, 2024

• 

[THE INVESTOR] Ottogi is drawing expectations for a governance structure reshuffle as it absorbs affiliates Sangmi Food and Richwood P&P, said Kiwoom Securities on July 18, maintaining a “buy” recommendation and 950,000 won (US$841.75) target price. 

The food company has already acquired stakes in four affiliates -- Ottogi Logistics, Ottogi SF, Ad Rich and RDS -- and added them as subsidiaries. This not only streamlines its governance structure and promotes transparency but also improves management efficiency and profitability, said analyst Park Sang-jun. 

Its second-quarter operating profit will rise 11 percent on-year to 46 billion won. Ottogi will maintain stable growth not only from mergers but also from advance in average sales price of its major products and increasing sales of instant noodles, processed rice products and frozen food, said the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)