DAISHIN SECURITIES analyzed on the 18th that Binggrae's strong overseas growth was overshadowed by sluggish domestic consumption and increased cost burdens. The target stock price was downgraded from the previous 120,000 won to 100,000 won, and they maintained an investment opinion of 'buy.'
Jung Han-sol, a researcher at DAISHIN SECURITIES, noted, "Binggrae's domestic sales growth has slowed due to sluggish domestic consumption and adverse weather, and it has recorded disappointing results due to increased expense burdens," adding, "While we expect a sales rebound in the second half of the year, the continued cost pressure is likely to lead to a decline in profitability."
Binggrae's second-quarter sales reached 409.6 billion won, a 1% increase compared to the same period last year, while operating profit dropped 40% to 26.8 billion won. The operating profit significantly falls short of the consensus (average forecast of securities companies).
The researcher explained, "The United States saw a 33% high growth thanks to strong sales at Costco, and Vietnam also grew by 20% during the same period, but China experienced a 21% decrease in sales due to poor refrigerated product performance," adding, "Despite efforts to control selling and administrative expenses like reducing marketing costs, the cost ratio surged, leading to a significant drop in profitability."