[Infostock Daily= Reporter An Hoe Hyun] Kiwoom Securities predicted on the 13th that Maeil Dairies will recover demand centered on convenience store channels and ease promotional intensity such as discount events due to the easing of the impact of COVID-19 this year. As a result, the investment opinion 'Buy' and the target stock price of KRW 110,000 were maintained.
Maeil Dairies's operating profit on a consolidated basis in the fourth quarter of last year is expected to rise 4% year-on-year to 21 billion won, and on a separate basis is also expected to rise 4% to 21.6 billion won. Although sales of cup coffee and processed milk have declined due to a drop in sales of modified milk powder and the third spread of COVID-19, sales of e-commerce have been brisk, mainly in white milk, Sanghafarm and grain beverages, and earnings are expected to increase slightly year-on-year due to growth in Selecs sales.
This year, separate sales are expected to increase 7% year-on-year to KRW 1.56 trillion and operating profit to KRW 106.1 billion, up 24%.
"As external activities resume this year, it is expected that product discount rates will be eased and product mix improvement effects will be normalized due to the expansion of high-profit products," the company explained.
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