The power of ‘Pokemon Bread’? SPC Samlip raises target price for best 1Q performance
Pokemon Bread has been creating an ‘open run’ phenomenon since it was re-released in February. It was revealed that SPC Samlip, which recently disclosed its sales in the first quarter, has benefited from the Pokemon Bread effect.
SPC Samlip’s sales in the first quarter of this year were 724.8 billion won, up 11.1% from the same period last year. Operating profit reached KRW 13.6 billion, up 30.1% from the previous year. Shinhan Financial Investment raised its target price of SPC Samlip to 96,000 won on May 11th.
The main reason for SPC Samlip’s earnings growth is the brisk bakery business. This is thanks to the fact that the Pokemon Bread, released at the end of February, has been selling hotly due to the craze of collecting ties. Pokemon Bread has sold over 10 million units in 40 days since its release, and the cumulative sales volume is expected to reach 22 million units by May. The contribution of Pokemon Bread to monthly sales in the first quarter of this year is said to be between 5 and 6 billion won. As a result, SPC Samlip Bakery Division recorded 175 billion won in sales and 12 billion won in operating profit in the first quarter of this year. This is an increase of 8.7% and 16.6%, respectively, compared to the previous year.
In addition, in the food business, sales and operating profit grew 13% and 100%, respectively, as both B2B and B2C improved following the re-opening.
Cho Sang-hoon, a researcher at Shinhan Investment Corp., said, “We raise our target price by 7% to reflect the faster-than-expected recovery of B2B channel performance. What is happening is positive.”
Thanks to the popularity of Pokemon Bread, SPC Samlip’s 2Q earnings are expected to improve further. In particular, the fact that the service area business, which has been in the red for the past two years, is turning into an endemic era and showing signs of a rebound is also expected to be a factor in the earnings improvement.
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]