[Special Stock] Daesang Rises 6% on Turnaround Expectations in Materials Sector

The stock price of Daesang is on the rise. Expectations that there is room for profit improvement due to a turnaround in the materials sector seem to be influencing the stock price.

As of 12:18 PM on the 17th, Daesang is trading at 22,600 KRW, up 6.35% from the previous day.

Daesang's consolidated first-quarter sales increased by 5.5% year-on-year to 1.045 trillion KRW, and operating profit for the same period rose 91.5% to 47.7 billion KRW.

Researcher Kwon Woo-jung of Kyobo Securities explained, "The starch syrup segment showed solid margin spreads, and along with a decrease in raw material input costs, there was an expansion in the proportion of specialty sales." He added, "The bio sector saw strong sales of liquid lysine to Europe." Furthermore, he noted, "In global food sales, through last year's acquisition of Lucky Food, we are expanding our presence in the mainstream U.S. market."

Researcher Kwon continued, "Considering the recent rebound in lysine prices, there may be additional profit improvement potential in the materials sector this year," and evaluated, "With the expansion of the Vietnam plant, overseas business will be strengthened, and the trend of expanding overseas operations is also positive."