[Featured Stock] S&D, Government's K-Food to Grow 1100 Trillion in 3 Years... Highlighted for Supplying Buldak Bokkeum Myun Sauce

S&D is showing strong performance. This is interpreted as being influenced by the news that the government plans to expand the K-Food market to 1,100 trillion won by 2027.

As of 2:07 PM on the 12th, S&D is trading at 36,300 won, up 5.83% compared to the previous day.

According to the industry, the Ministry of Agriculture, Food and Rural Affairs plans to develop the food industry into a global growth industry and expand the market to 1,100 trillion won by 2027. To this end, they plan to create a ‘Food Tech Innovation Cluster’ utilizing advanced technologies such as food tech and green bio to enhance the competitiveness of small and medium food companies. Additionally, they will actively foster future promising foods such as functional foods and senior-friendly foods.

In January this year, the Ministry launched the ‘K-Food+ Export Expansion Headquarters’ and set the K-Food+ export target for this year at 13.5 billion dollars, an 11.2% increase compared to last year’s performance. Along with efforts from the government and public-private companies, the cumulative K-Food export amount (provisional) as of May 2024 recorded 3.96 billion dollars, a 7.6% increase from last year, and the export growth rate has been rising every month for the past three months compared to the previous year.

Meanwhile, S&D is a company that supplies natural and mixed seasoning bases and food additives to large companies’ export finished products. They supply ramen, confectionery, snacks, and their main products include grill concentrates, cheese powder, and spicy base powder. Notably, they are known to supply the sauce for Buldak Bokkeum Myun, which has recently gained global popularity.

Park Jong-sun, a researcher at Eugene Investment & Securities, stated in a report, "With the expansion of the K-Food craze, we expect a significant increase in exports from S&D’s major customers," and forecasted, "Stable performance growth in the first quarter as well as a substantial year-on-year increase in annual performance, setting a new record high."