[Click eStock] "SPC Samlip, Strengthening Synergy in Overseas Business"

On the 27th, IBK Investment & Securities analyzed that "the synergy of SPC Group's overseas business is being strengthened in line with the K-Food boom." They maintained a 'Buy' rating and a target price of 74,000 KRW for SPC Samlip.

SPC Group announced the completion of a bakery factory in Johor, Malaysia, the day before. The Paris Baguette Johor Production Center is expected to expand its entry into Southeast Asia and the Middle East by producing up to 300,000 bakery products per day and up to 100 million annually through seven production lines.

Analyst Kim Taehyun stated, "It appears that SPC Samlip's product manufacturing will also be promoted at the Johor factory," adding, "They will first start producing raw dough for B2B use and are expected to expand the product categories to mass-produced bread for B2C use, such as snacks, baguettes, and desserts." Accordingly, SPC Samlip is expected to establish an ASEAN sales corporation soon and actively sell products produced at domestic and Johor production centers in Southeast Asia and the Middle East.

SPC Samlip has already exported to Southeast Asian regions such as Vietnam and the Philippines but had not achieved significant results. This was due to lower price competitiveness caused by higher selling prices compared to local products and difficulties in diversifying products as exports mainly consisted of items with long shelf lives. Selling products produced at the Johor production center is expected to resolve many of these challenges.

SPC Samlip, a core affiliate of SPC Group, had consolidated financial statement sales stagnating at 3.4333 trillion KRW in 2023 and 3.428 trillion KRW last year. Following the announcement of the completion of the Johor production center on the 26th, the stock price rose 5.77% from the previous closing price to 51,300 KRW.

Meanwhile, once SPC Group's factory in Texas, USA, is completed in 2027, it is expected to contribute to SPC Samlip's mid- to long-term business expansion in the North American market.