[Featured Stock] Binggrae Drops Over 10% Amid Weak Q2 Earnings

Binggrae's stock has plunged due to poor performance in the second quarter of this year.

As of 9:31 a.m. on the 16th, Binggrae is trading at 70,500 won, down 8,000 won (10.19%) from the previous close.

The weak second-quarter performance is believed to have dragged down the stock price. Binggrae recorded consolidated sales of 407.5 billion won in the second quarter, up 4.8% year-on-year, and operating profit of 44.9 billion won, down 2.9%. These figures fell short of the consensus (average securities firms' forecast) of 412.3 billion won in sales and 51.8 billion won in operating profit.

Kim Taehyun, a researcher at IBK Investment & Securities, analyzed, "Thanks to the early heatwave, Binggrae and Haitai Ice Cream saw improved ice cream sales, and the stabilization of raw milk import prices led to a decline in cost ratios. However, due to increased selling and administrative expenses such as advertising and sales commissions, the performance was weak." IBK Investment & Securities lowered Binggrae's target stock price from 130,000 won to 110,000 won, reflecting the burden of rising selling and administrative expenses.