[Click e-Stock] "Harim Holdings, Asset Development Hopes... Target Price Raised"

BNK Investment & Securities Sets Harim Holdings' Target Price at 18,000 Won

BNK Investment & Securities said on October 15 that it was raising its target price for Harim Holdings from 16,500 won to 18,000 won and maintaining its “Buy” rating, expecting asset development to have a multiplier effect on shareholder value.

BNK Investment & Securities said Harim Holdings had built a solid business structure centered on livestock and marine transportation. Its livestock integration business, in which feed companies and breeding farms enter into contracts, along with meat processing and home meal replacement (HMR) businesses, provides stability. The acquisition of Pan Ocean has benefited the holding company in terms of asset scale, while growth is expected to continue as the number of vessels increases.

It also highlighted the Yangjae-dong freight terminal site owned by subsidiary Harim Industrial. The site, which received approval from the Seoul Metropolitan Government and is expected to break ground next year, is set to be developed with residential facilities and an advanced logistics center. “With the development plan for the Hannam section of the Gyeongbu Expressway finalized, there is no reason to delay development of the site, and the feasibility study is nearing completion after a lengthy review,” said Kim Jang-won, a researcher at BNK Investment & Securities. “This is a long-dormant asset development opportunity whose impact is expected to become evident as soon as construction begins, and interest in it will grow.”

On the lack of changes to dividends despite an increase in dividend income, Kim said the rise in borrowings was the reason. “The increase in borrowings was due to the construction of production facilities for the food business. With the facility investment now complete, the company is laying the groundwork to enhance shareholder returns as it seeks to address its undervaluation relative to the value of its assets,” he said. “As expectations for the site’s development grow, interest in Harim Holdings is also likely to increase.”

He also expected NS Shopping’s acquisition of Homeplus Express to generate synergies with the online-focused business structure and Harim Foods’ marketing. “While attention is focused on Harim Industrial’s land development and food business, Harim USA, which has increased its stake through additional share purchases from an affiliate, is also worth watching, as it could deliver results in the U.S. market,” Kim said.

BNK Investment & Securities valued Harim Holdings’ listed companies (based on the market capitalizations of Pan Ocean, Harim, Sunjin and Farmsco) at 2.1046 trillion won, and its unlisted companies at 2.1409 trillion won based on their book values.

This content was produced with the assistance of AI translation services.