[Click eStock] "GreenPlus, Overseas Expansion Expected... Target Price 30,000 Won"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 25th that GreenPlus is expected to perform well in the second half of the year with orders and overseas expansion. The investment opinion was given as 'Strong Buy (STRONG BUY)' with a target price of 30,000 KRW.

KTB Investment & Securities forecasted that GreenPlus will achieve sales of 21 billion KRW and an operating profit of 2.2 billion KRW in the second quarter, representing increases of 23% and 16% respectively compared to the same period last year.

In particular, it is expected that orders for smart farm projects led by local governments, in addition to the government-led Smart Farm Valley, will be secured in the second half of the year. Researcher Jaeyoon Kim of KTB Securities said, "Smart farm projects in Jecheon, Goseong, and Ulju regions are gaining momentum, so orders from these areas are anticipated," adding, "Due to the decline in rural population and smart farm promotion policies as part of rural support policies, orders from local governments are expected to increase annually."

The possibility of overseas expansion is also increasing. He emphasized, "Having succeeded in entering the Australian and New Zealand markets, the possibility of entering the UAE market is also rising," and added, "GreenPlus is the lead institution for the Rural Development Administration’s desert smart farm demonstration project and is developing Middle East-customized greenhouses for the UAE. The Middle East market, where the food self-sufficiency rate is below 10%, is expected to be a market larger than Australia."

Expansion into Asia is also anticipated. He stated, "New entry into the Southeast Asian market is becoming visible, and the government has announced agricultural and forestry ODA (Official Development Assistance) to support food security in developing countries," explaining, "This includes plans to supply smart farms to Indonesia, Vietnam, the Philippines, Cambodia, and Uzbekistan." He added, "GreenPlus was selected for the national smart farm ODA project for Indonesia, with market entry expected in the first half of 2022. Additional expansion into other Asian countries is also anticipated."