The stock price of Daesang is on the rise. Along with the base effect, expectations for improved performance of consolidated subsidiaries seem to be influencing the stock price.
As of 10:39 AM on the 18th, Daesang is trading at 20,850 KRW, up 3.73% from the previous day.
Sim Eun-joo, a researcher at Hana Securities, stated, "Last year, due to the burden of grain input costs, an operating loss of 23.5 billion KRW was recorded, but even with conservative estimates, a profit contribution of around 15 billion KRW is expected this year. Stabilization of corn input costs is making the improvement in starch sugar margins visible, while the recovery of the lysine market and expansion of functional amino acid production will be effective."
She added, "A significant spread improvement is expected this year," and "The current stock price is only 7 times the 12-month forward price-to-earnings ratio (PER), making the valuation attractive."
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