IBK Securities said on the 23rd that CJ Freshway could expand its online market share by acquiring Marketboro. IBK Securities maintained a Buy rating on CJ Freshway and a target price of 48,000 won.
CJ Freshway on the 5th disclosed that it would acquire 1,657 shares of equity in Marketboro. Marketboro operates the open-market platform "Sikbom," which leads Korea's online foodservice distribution market, and "Marketbom," a foodservice order, supply, and distribution management service.
Researcher Nam Seong-hyeon at IBK Securities said, "If CJ Freshway's acquisition of Marketboro equity is completed, the equity ratio is expected to reach 55%, securing management control," and added, "We view the Marketboro acquisition as a cornerstone for increasing market share by expanding the online platform."
They added, "Expanding the business domain from offline to online has three major implications," analyzing them as "sustainable growth through increased market penetration, drawing businesses into the online space by creating an ecosystem, and entering new business areas."
Entry into the online market through the acquisition of Marketboro equity is expected to lead to an expansion of channels in the general restaurant market.
Nam said, "Entering the online space in the foodservice distribution market is more important than anything," adding, "As channels in the general restaurant segment expand, the effective target market also grows; profitability is expected to improve through efficiencies in transaction costs and fixed expenses; the market can be targeted through collaboration with small and midsize operators; and the expansion of non-exclusive product supply raises the likelihood of margin improvement."