April 20, 2024

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[THE INVESTOR] Binggrae is garnering considerable expectations for its second-half earnings due to the hike in frozen dessert sales in the hot summer, said IBK Investment and Securities on Sept. 13, maintaining a “buy” recommendation and raising the target price to 95,000 won (US$84.82) from 85,000 won.

The record summer temperature and growing number of ice cream specialty stores boosted the consumption of frozen desserts. Its frozen food sector’s revenue will reach 133.8 billion won, and with overall 267.4 billion won revenue and 27 billion won operating profit, its third-quarter earnings will beat market consensus. The average price rise from stabilizing fixed-price system and strong sales of premium range products will push up its margins, said analyst Kim Tae-hyeon.

In addition to the scorching weather, more marketing investment has boosted general sales of cold storage products. Cupped coffee sales are gaining steadily and that of its flagship banana-flavored milk, which was slow until last quarter, will pick up 3 percent from last year, he added.

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