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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘SPC Samlip to improve from Q3’

  • PUBLISHED :August 29, 2018 - 11:08
  • UPDATED :August 29, 2018 - 11:08
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[THE INVESTOR] SPC Samlip’s earnings will begin to pick up from the third quarter, said KB Investment and Securities on Aug. 29, maintaining a “buy” recommendation and 170,000 won (US$153.18) target price.



Its revenue in the period will rise 2.6 percent on-year to 536.3 billion won and operating profit by 81.2 percent to 13.7 billion won, turning around from downward trend that started a year ago. Its cash cow bakery sector will diversify and expand distribution while stabilizing costs, The growing contribution from subsidiary Egg Farm and improving margins in food distribution will lift its bottom line, said analyst Park Ae-ran. 

Although growth of its conventional bread division will be limited, sandwiches and frozen desserts are gaining significantly, and being a higher-margin category are boosting both growth potential and profitability. It is dominating the bakery market and is showing distinct improvement in profit structure. In the third quarter earnings and stock price will advance significantly, she said.

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

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