Hi Investment & Securities maintained a 'buy' rating with a target price of 100,000 won for Maeil Dairy, saying it is expected to reflect price adjustments for milk and dairy beverages.
"Maeil Dairy's individual sales in the third quarter was 392.1 billion won, up 3.6% from the same period of the previous year, and operating profit increased 3.8% to 22.8 billion won," said Hi Investment & Securities.
"Although the top-line growth was reduced due to some influence on the growth rate of seasonal beverages during the peak season, it has a solid market dominance compared to other dairy companies, and it met market expectations through cost-efficiency.”
"The impact of fundamentals is lower than other peers, such as maintaining a profit margin of around 6% a year despite worsening external variables related to COVID-19 and the falling fertility rate. There is a possibility that business performance will continue to improve steadily by the end of 2021," Hi Investment & Securities said.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
