[Edaily Reporter Hyera Lee ] On the 23rd, KIWOOM Securities projected that CJ Freshway Corporation(051500)would enter a new phase of growth as it leverages its online platform to target the 30 trillion won market for individual restaurant operators.

Park Sang-jun, an analyst at KIWOOM Securities, stated in a report released that day, “The company plans to move beyond its structure centered on offline sales and begin in earnest to target the 30 trillion won market for independent food service operators by leveraging its online platform,” adding, “This is expected to open up a new avenue into markets it has not been able to penetrate until now.”
Analyst Park estimated the size of the domestic foodservice ingredients distribution market at approximately 43 trillion won. He noted that while the market for independent foodservice operators accounts for about 30 trillion won—roughly 70% of the total—CJ Freshway Corporation’s market penetration rate remains low.
He explained, “The market for independent restaurant operators has traditionally been difficult to achieve economies of scale through offline sales alone, due to small order sizes and a large number of customers,” adding, “Recently, as restaurant operators’ use of mobile shopping has increased and the number of young restaurant owners has grown, resistance to purchasing food ingredients online is rapidly diminishing.”
Accordingly, he projected that the online platform “Sikbom” would become a key driver of growth. Researcher Park assessed, “Compared to the existing structure centered on offline sales, it will be possible to expand the customer base with fewer sales personnel, enabling an efficient approach to the small-scale food service operator market,” adding, “Our ability to resolve information asymmetry through price comparison services and provide stable delivery services based on a nationwide logistics network is also a competitive advantage.”
He also emphasized the company’s competitive edge over rivals. While competitors such as Baemin Sanghoe, Cashnote Market, and Dabihwa Sanghoe are expanding their food ingredient platform businesses, the analysis indicates that their transaction volumes remain at an early stage. In contrast, CJ Freshway Corporation has secured a competitive advantage in terms of food ingredient distribution volume, logistics coverage, and infrastructure, and the platform’s annual transaction volume has already surpassed 2000억 won.
Researcher Park stated, “Unlike competitors who rely on direct purchasing or open-market models, CJ Freshway Corporation plans to encompass a full range of business models—including direct purchasing (1P), brokerage, consignment (2P), and open-market (3P)—and will be able to secure an advantage in terms of price, product assortment, and logistics coverage.”
He also saw ample room for profitability improvement. “The profitability of the platform business ultimately depends on whether purchasing power and basket size can be expanded,” he noted. “As the platform’s transaction volume grows, bargaining power for purchase prices will increase, and as the average order value per customer rises, delivery efficiency will improve, leading to enhanced profitability,” he projected.
He continued, “While there will be an initial investment burden associated with expanding the platform business, the current 12-month forward price-to-earnings ratio (PER) is only around 5x, making it highly attractive in absolute valuation terms,” adding, “It is important to note that targeting the market for independent food service operators will expand the addressable market and improve profitability as the platform leader.”