[Click eStock] "Heungkuk F&B, Expecting Overseas Growth of Taylor Farms"

NH Investment & Securities analyzed on the 9th that Taylor Farms' overseas growth is expected for Heungkuk F&B.

Baek Jun-gi, a researcher at NH Investment & Securities, stated in a report on the day, "Heungkuk F&B mainly operates a B2B business supplying beverage concentrates and coffee products to major coffee franchises and cafe operators," and introduced, "In 2021, they expanded into B2C by acquiring Taylor Farms."

Researcher Baek explained, "Taylor Farms' prune products and Deep Water beverages have high detox effects, maintaining good sales at the largest drugstore in Korea, and have also started supplying convenience stores," adding, "The core B2B business is steadily growing."

Researcher Baek analyzed, "This year, sales growth of over 10% is expected along with orders for seasonal beverages from Company A and growth of online specialized customers," and "The B2C business through Taylor Farms has a relatively high profit margin, contributing significantly to profit growth."

He continued, "Recently, through SKU expansion, a diverse portfolio including core products such as Deep Water is being built," and "At the same time, Heungkuk F&B is preparing to enter China using the proven Taylor Farms products domestically."

He said, "Online sales preparation has been underway since the end of May, and the selection of a local marketing company is in the final stages," adding, "There is already a foundation in the Chinese market with the existing Gun Prune products, and the company is also focusing on entering China, so sales expansion is expected at a faster pace than in Korea."

Furthermore, he added, "Currently, Taylor Farms' exports to Southeast Asia are showing results, and the expectation for expansion in China remains valid, giving it the appeal as a growth stock."