[Click eStock] "EasyBio, Benefiting from Growth in Feed Additive Market"

On the 10th, Eugene Investment & Securities stated that EasyBio has emerged as a global feed additive company, issuing a 'Buy' investment rating and setting a target price of 8,000 KRW.

Researcher Heo Jun-seo of Eugene Investment & Securities explained, "By acquiring the US feed additive company Devenish, its scale has doubled," adding, "The steep growth trend is expected to continue until next year."

He added, "With the elimination of acquisition-related costs and the end of retention bonus payments to employees, next year will be a year of optimized profitability." Retention bonuses refer to additional compensation paid to employees who work for a certain period to prevent turnover.

Researcher Heo analyzed, "EasyBio, which has production clusters in Korea and North America and sales networks across Asia, Europe, North America, and South America, is expected to establish its status as a global feed additive company."

The global feed additive market is expected to grow steadily at an average annual rate of 6%. The market size is projected to increase from 55 trillion KRW in 2023 to 74 trillion KRW by 2028. Feed additives are products added to livestock feed to improve growth. The growth rate of EasyBio's main product, enzymes, is about 10%, exceeding the overall market growth rate of 7%.

He forecasted, "US pork production will surpass chicken production and show the highest growth rate going forward," noting, "Pork production, which was 14.48 million tons last year, is expected to grow to 17.21 million tons by 2034." He also emphasized, "Since EasyBio can sell feed and feed additives in close proximity to US pig production bases, it can benefit from the increase in US pork sales."