[Click eStock] "Wuyang Leads K-Food Wave, Starts Exporting 'Frozen Gimbap' to the US"

Yuanta Securities stated on the 24th that Wuyang is expected to supply frozen gimbap to major U.S. supermarkets starting from the second half of this year. No investment opinion or target price was provided.

Son Hyun-jung, a researcher at Yuanta Securities, said, "Wuyang is expected to supply frozen gimbap to major U.S. supermarkets from the third quarter of this year," adding, "Currently, they are receiving simultaneous love calls from three major U.S. supermarkets, and it is highly likely that the products will be supplied under private brands (PB) or their own brand products."

He emphasized, "Around July to August, there are plans to launch frozen gimbap as an original equipment manufacturer (OEM) product in large domestic supermarkets," and added, "Wuyang's monthly production capacity (CAPA) for frozen gimbap is about 1.2 million units, securing the second-largest production capacity domestically." He continued, "The annual sales CAPA for frozen gimbap is estimated at approximately 20 billion KRW, with sales expected to exceed 10 billion KRW this year."

Researcher Son explained, "Frozen gimbap has recently led the K-food craze centered in the North American region, causing sold-out phenomena," and noted, "Currently, there are three companies exporting frozen gimbap from Korea, with estimated monthly export volumes of about 2 to 3 million units."

He forecasted, "The export amount of frozen gimbap in April this year was about 6.05 million USD, a sharp increase of 531.5% compared to the previous year," adding, "Especially this year, export growth has been steep, and due to the popularity of K-food, supply shortages are expected to continue."

Yuanta Securities expects Wuyang's sales and operating profit this year to reach 217 billion KRW and 10 billion KRW, respectively, representing increases of 13.4% and 669.2% compared to the previous year. He said, "The hot dogs supplied to Costco in North America last year will generate stable sales from June onward through a monthly order system after the initial six-month supply was exhausted," and added, "From the second half of the year, hot dog products are expected to be newly supplied to major U.S. supermarkets beyond Costco."

Researcher Son explained, "Despite being a latecomer, Wuyang has the advantage of efficiently increasing production CAPA compared to competitors due to reduced investment costs from securing land," and added, "As the only listed company producing frozen gimbap, it is expected that the benefits will be fully reflected."