[Asia Economy Reporter Yoo Hyun-seok] EasyBio is showing strong performance. This is interpreted as a result of being a beneficiary stock amid the continued high international grain prices.
As of 10:01 AM on the 15th, EasyBio was trading at 8,470 KRW, up 4.57% (370 KRW) compared to the previous trading day.
Recently, international grain prices have been continuously rising sharply. According to Kiwoom Securities, as of the 7th, the prices of corn, wheat, soybeans, and raw sugar surged by 45%, 33%, 53%, and 36% respectively compared to the end of the first half of 2020. Researcher Jo Mi-jin of NH Investment & Securities analyzed in a recent report, "EasyBio is expected to benefit from increased demand due to rising feed prices and expanded price competitiveness," adding, "EasyBio's feed additives are special functional feeds with a significantly low proportion of grains such as corn or soybeans in raw materials, so there is almost no burden from cost increases."
Researcher Jo also mentioned, "Major grain prices have continued to rise since the second half of last year due to abnormal weather in major exporting countries such as droughts and increased demand from China," and "Factors supporting the rise in international grain prices continue to occur, such as prolonged droughts in South America causing supply concerns and temporary export suspensions in Argentina."
Along with this, Daishin Securities analyzed that despite the recent stock price increase, EasyBio remains significantly undervalued compared to global peers. Researcher Han Yoo-jung of Daishin Securities stated, "Improving feed quality is essential to enhance farm productivity," and "With the expanded application of feed additives, the global feed additive market's compound annual growth rate from 2020 to 2025 is expected to exceed 6%."
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