BNK Investment & Securities said on the 1st that Harim Holdings' acquisition of Homeplus Co. Express was a choice to expand its business. It maintained a "Buy" rating and a target price of 16,500 won. Harim Holdings' previous closing price was 9,720 won.
BNK Investment & Securities said Harim Holdings' integration from feed to livestock is showing up as greater business stability and profitability.
Kim Jang-won, an analyst at BNK Investment & Securities, said, "Excluding Pan Ocean, which has the largest share in Harim Holdings' consolidation results, the improvement effect is clear," and added, "Feed producers and livestock farms are organically connected, so the integration effect is expected to have a positive impact on the food business."
Following the acquisition of Pan Ocean and the purchase of the cargo terminal site in Yangjae-dong, the acquisition of Homeplus Co. Express is analyzed as a choice to expand its business. Harim Holdings is currently focusing on the food business along with developing the Yangjae-dong cargo terminal site.
Kim said, "Because site development requires government approval procedures, corporations' roles are limited until approval, so we are concentrating our capabilities on the food business," adding, "Homeplus Co. Express is also intended to strengthen customer touchpoints for fresh food and the delivery system."
Regarding the acquisition of Homeplus Co. Express, the overall outlook is good, and the fact that NS Shopping is the acquirer makes it very unlikely the burden will be shifted to the holding company. It was also assessed favorably in detail, as the distribution process is one of the competitiveness factors along with the brand of food.
Kim explained, "In the food business, where the strategic focus has shifted from capital expenditure build-out to marketing, financial burdens are expected to be managed within a range that does not deviate significantly from the current level."
Meanwhile, Kim added that, instead of the food business, which needs time to be forged, attention is on the development project for the Yangjae-dong cargo terminal site, which is expected to receive building approval within this year.
Kim analyzed, "If the review schedule proceeds as expected, groundbreaking seems possible next year."