SPC Samlip Stock Hits a 'Home Run' Amid KBO Bread Popularity

1 million Packs Sold in Just Three Days... Faster Than Pokemon Bread
Profitability of Bakery Division Expected to Improve
Securing Additional Growth Momentum Through Overseas Expansion

SPC Samlip, the producer of Samlip Hoppang, Boryeongdal, and cream bread, has seen its corporate value rapidly increase this month. The popularity of KBO Bread, which began sales on the 20th, acted as a catalyst for the stock price rise. Expectations that growth will accelerate due to overseas expansion also contributed to the stock price increase.

According to the financial investment industry on the 26th, SPC Samlip's stock price rose 22.6% this month. Its market capitalization expanded to 526 billion KRW.

KBO Bread sold over 1 million packs within just three days of launch. Released in collaboration with the Korea Baseball Organization (KBO) and the Korea Professional Baseball Players Association, KBO Bread includes 215 types of Ttibuseal (stickers) featuring mascots and affiliated baseball players from nine teams. The price of KBO Bread is 1,900 KRW per piece, which is more expensive than general mass-produced breads like Pokemon Bread and cream bread. As the sales proportion of KBO Bread increases, it is expected to positively impact the profitability of the bakery division.

Kim Taehyun, a researcher at IBK Investment & Securities, analyzed, "The point at which sales exceeded 1 million packs is faster than Pokemon Bread in 2022," adding, "Monthly maximum Pokemon Bread sales reached 12 billion KRW, and bakery sales have maintained double-digit growth for five consecutive quarters since Q2 2022."

He continued, "Interest and demand for KBO Bread are expected to continue, coinciding with the opening of the KBO League this year," and added, "While the main consumer base of Pokemon Bread was teenagers and people in their 20s, the main consumers of KBO Bread are in their 20s and 30s, who have higher purchasing power."

Raising the prices of existing major bakery products such as Pokemon Bread and Boryeongdal Bread can also help improve profitability. Park Seongho, a researcher at LS Securities, said, "

With the stabilization of major raw material prices expected this year, profitability in the bakery division is likely to improve," and predicted, "If KBO Bread succeeds in becoming as popular as expected this year, the extent of profitability improvement will be even greater."

News of SPC Group expanding its overseas markets is also expected to influence SPC Samlip's growth. SPC Group completed the 'Paris Baguette Johor Production Center,' a bakery factory in Nusajaya Tech Park, Johor, Malaysia, at the end of last month. The Paris Baguette Johor Production Center can produce up to 300,000 bakery products per day and up to 100 million annually, supplying Southeast Asia and the Middle East. It is expected to produce SPC Samlip products as well. The factory will produce dough for business-to-business (B2B) transactions and expand production to mass-produced breads for general consumers, including snacks, baguettes, and desserts. There is also the advantage of utilizing Paris Croissant's distribution channels to expand SPC Samlip's sales channels overseas.

SPC Samlip is also creating growth momentum in the North American market, including the United States. Choi Seonghwan, a researcher at Research Alme, said, "In an economic slowdown phase, consumers naturally prefer cost-effective foods and essential consumer goods," adding, "SPC Group plans to complete a large-scale bakery factory in Texas, USA, by 2027." He emphasized, "SPC Samlip has a partnership with H Mart, the largest Asian distribution channel in the United States."