[Featured Stock] Kyochon F&B Rises for Second Day on Earnings Expectations... Surpasses 10,000 Won Intraday

Kyochon F&B has been on the rise for the second consecutive day on the 23rd, fueled by expectations for this year's and next year's performance.

As of 9:52 a.m. on the day, Kyochon F&B was trading at 9,820 KRW, up 230 KRW (2.40%) from the previous close.

The stock price reached an intraday high of 10,100 KRW, surpassing the 10,000 KRW mark. Following a rise of over 9% the previous day, the stock has continued its upward trend for two consecutive trading days.

The stock is believed to be driven up by expectations of turning a profit in the third quarter and achieving record-high performance next year.

Nam Seong-hyun, a researcher at IBK Investment & Securities, explained in a report, "We estimate next year's sales to reach 500.5 billion KRW and operating profit to be 55.1 billion KRW," adding, "This represents an increase of 7.2% and 134.1%, respectively, compared to the previous year."

He also added, "The effect of improving the distribution structure following the completion of the franchise regional headquarters conversion will fully materialize," and "We also expect profitability improvements due to logistics and elimination of some inefficiencies."

The outlook for the third quarter of this year is also positive. KB Securities forecasts that Kyochon F&B's sales for the third quarter will increase by 5.7% from the previous quarter to 120.4 billion KRW, and operating profit will turn positive to 7.1 billion KRW compared to the previous quarter.

Seong Hyun-dong, a researcher at KB Securities, analyzed, "The gross profit margin is expected to improve rapidly due to the direct management conversion of franchise regional headquarters," and "Through this, the gap in gross profit margin with competitors is expected to narrow."