[Infostock Daily= Reporter An Hoe Hyun] Hanwha Investment & Securities maintained its investment opinion 'Buy' and target stock price of 80,000 won on the 12th, saying that Shinsegae Food is expected to grow due to the improvement of its constitution, including the conversion of food manufacturing companies.
"Shinsegae Food is in the process of turning into a food manufacturing company by reorganizing its division," the company said, adding, "It is positive that it is expected to increase manufacturing sales by securing new growth engines and expanding channels as the No Brand Burger franchise business begins in earnest next year."
Shinsegae Food posted 320.9 billion won in sales in the third quarter, down 4.9% from the same period last year, and 4.5 billion won in operating profit, down 28% due to sluggish business conditions.
"Although it is showing poor performance, the slump in the group meal service and restaurant business is easing compared to the first half of the year," the company analyzed, adding, "The expansion of the No brand burger store network has eased its poor performance, and the proportion of sales in the manufacturing sector is increasing."
Reporter An Hoe Hyun ahh@infostock.co.kr