[Click eStock] "Lotte Chilsung, Hidden Stock in Food and Beverage Sector... 'Buy' Maintained"

Sangsangin Securities maintained a 'Buy' rating and a target price of 185,000 KRW for Lotte Chilsung on the 12th, evaluating it as a hidden stock within the food and beverage sector, which has recently been gaining attention.

Researcher Kim Hyemi of Sangsangin Securities stated, "Considering the trend of raw sugar prices, we expected high input costs to be a burden until the second quarter of this year, but price increases for major products have been implemented starting this month, which may somewhat alleviate concerns." She added, "Growth is still centered on carbonated and energy drinks, and the juice category, after a prolonged decline, has shown a gradual growth trend since the fourth quarter of last year, which is expected to continue."

Researcher Kim also anticipated performance growth in the alcoholic beverages sector. She explained, "The strong sales of new soju products are driving performance, and the continuous release of extension products is positive." She further noted, "Beer sales are also showing an increasing trend following the launch of bottled products and the subsequent release of canned products targeting the home market."

She continued, "Although a turnaround was expected from the third quarter, when the peak season and spread effects occur, the second-quarter performance is also expected to be more robust than anticipated." She added, "Amid the recent strong performance and export growth of food and beverage companies, this is a hidden stock within the sector."