"Order Chicken Stocks If You Say World Cup"

[Asia Economy Reporter Minji Lee] As the 'chicken boom' World Cup approaches in about a week, the stock prices of chicken-related companies are soaring. Investors seeking short-term profits are flocking, and besides chicken stocks, there is a busy search for stocks that can capitalize on the World Cup boom.

According to the Korea Exchange on the 16th, from the 17th of last month until the day before, Kyochon F&B, the franchisor of Kyochon Chicken, rose 24.49% to 12,150 won. On the 14th, it even surged to 13,050 won during trading hours, recovering to the stock price level of August. This reflects the expectation that chicken companies' sales will increase significantly during the World Cup period. Meat processing companies such as Maniker F&G (25%) and Maniker (24%) are recording gains far exceeding the KOSPI return (11%). Harim, in the same business sector, also showed a rise of about 9%, while MP Daesan, which operates Mr. Pizza (15%), and Hite Jinro, a liquor company including beer (9%), also rose.

Benefits from World Cup broadcasting are also expected. AfreecaTV, a one-person media platform, surged 27.43% in the past month. Although it announced results below market expectations in the third quarter, the stock price recorded a steep rise reflecting expectations for fourth-quarter earnings. The core of the earnings increase is the Qatar World Cup, held from the 20th of this month to the 19th of next month. Since online broadcasting rights have been secured, the monthly unique visitors (MV) are expected to increase significantly. During the last Russia World Cup (June 14 to July 15, 2018), AfreecaTV's visitor numbers increased sharply in June, rising about 28% compared to the previous year.

KB Securities researcher Yonghyun Choi said, “The MV will rebound significantly due to the World Cup event,” adding, “AfreecaTV is positively lowering platform hurdles by diversifying content to increase the retention rate of new visitors attracted by the Qatar World Cup.”

Although earnings growth is expected from the World Cup, some companies' stock prices remain quiet. Advertising company Innocean is expected to benefit from World Cup marketing, but its stock price rose only 1.81% over the past month. Innocean counts Hyundai Motor and Kia as its main clients, both of which are official partners of the F?d?ration Internationale de Football Association (FIFA) and hold marketing rights related to the World Cup. An researcher Jina Ahn of Ebest Investment & Securities explained, “The contribution to gross profit is expected to exceed 10 billion won (based on the 2018 Russia World Cup),” adding, “The strengthening of domestic and overseas new car marketing in the fourth quarter is also a short-term investment point.”