[Special Stock] Kyochon F&B Hits 10,000 Won After 15 Months... Expectations on China Market and Earnings

China 2nd Branch Opening, Accelerating Expansion
Operating Profit Expected to Increase Due to Logistics Efficiency
Beneficiary of Price Hike in Chicken Industry

Kyochon F&B recorded a 52-week high for three consecutive trading days. It also surpassed the 10,000 KRW mark for the first time in 15 months. The acceleration of its expansion into China and improved earnings outlook appear to have influenced this.

As of 9:15 AM on the 28th, Kyochon F&B was trading at 10,050 KRW, up 2.33% (230 KRW) from the previous day. After surpassing the 52-week high of 9,200 KRW set in August 2023 on the 24th, it has consecutively set new 52-week highs on the 27th and 28th. This is the first time since February 2023 that Kyochon F&B’s stock price has exceeded 10,000 KRW.

The day before, Kyochon F&B announced the opening of its second directly operated store in China, following the first in Hangzhou. The new store is called 'Hangzhou Daiweicheng Branch.' It is located in a shopping mall in the center of Hangzhou. This is the second directly operated store in China since December last year. Kyochon F&B plans to open a third store within the first half of this year.

Along with the recent strength in the food and beverage sector, Kyochon F&B’s positive future earnings prospects are being highlighted. Nam Seong-hyun, a researcher at IBK Investment & Securities, said, "With logistics efficiency and a full transition to a direct operation system, the fundamentals are likely to level up significantly. They have already established a nationwide logistics network by building a large-scale logistics center, and operating profit is conservatively expected to increase by about 20 billion KRW." Amid signs of price increases in the chicken industry, if the industry-wide price hike rally continues, Kyochon F&B’s profit improvement could be even more substantial, which is also a positive factor.