[Infostock Daily= Reporter An Hoe Hyun] KB Securities maintained its investment opinion Buy on Samyangpackaging on the 26th and offered target stock price of 29,000 won, up 11% from the previous. Analysts say that the business axis is shifting from a market-sensitive chemical industry to a stable business beverage industry, and that the financial structure is expected to improve due to reduced debt.
Samyangpackaging's annual performance last year was 367.6 billion won in sales, down 2.1% from a year earlier. Operating profit grew 25% over the same period to 52.1 billion won. In terms of fourth-quarter earnings alone, annual profit growth is estimated to have continued despite a 6.9% and 9.5% year-on-year drop to 81.9 billion won in sales and 7.5 billion won in operating profit.
This year's annual earnings are expected to reach 393 billion won in sales and 56.5 billion won in operating profit, up 6.9% and 8.6%, respectively, from a year earlier. "Samyangpackaging's aseptic beverage OEM·ODM's competitiveness in the industry is comparable to the TSMC of the semiconductor foundry industry," the company explained, adding, "The aseptic method sterilizes the beverage at an ultra-high temperature in an aseptic state, cooling and charging it immediately, and is considered to have excellent technology in the market because it is advantageous in terms of taste, aroma preservation and hygiene compared to the existing beverage charging method."
As the introduction of the aseptic method increases, the size of the related market is expected to grow further in the future. Considering the widespread introduction of related methods to coffee, sports beverages and carbonated beverages, starting with tea such as corn silk tea, demand for 430 million units in 2016 is expected to grow to 1.14 billion by 2025.
Reporter An Hoe Hyun ahh@infostock.co.kr
