April 20, 2024

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[THE INVESTOR] Hyundai Green Food’s earnings will improve in the latter half, said KB Investment and Securities on Sept. 19, maintaining a “buy” recommendation and 18,000 won (US$16.02) target price. 

Its revenue in the third quarter will hike 35.7 percent on-year to 824.8 billion won and operating profit by 53.9 percent to 41.5 billion won. While its construction equipment subsidiary Everdigm will be stagnant, price rise of institutional meal service, sharp growth of dining sector especially in food courts in department stores and bakeries, and growing sales of gift sets for Chuseok holiday will propel the earnings improvement, said analyst Park Ae-ran.

Operating profit excluding that of Hyundai Livart will be 26.8 billion won, but considering that business days for meal service will decline during Chuseok this month, the figures are solid. Meanwhile, the company is planning to build a “smart food center” in the second half of next year, which will strengthen its manufacturing capacity and efficiency of its meal service, added the analyst. 

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