[Edaily Reporter Kwon Oh Seok ] Yuanta Securities Korea stated on the 30th that “ SPC SAMLIP(005610)is structurally expected to see a normalization of profitability in its domestic business and expansion of its overseas growth businesses.” However, the firm did not provide an investment rating or a target price.

Previously, SAMLIP had indicated that 2026 would mark the trough of its profitability during a CEO-led investor relations briefing the previous day. The company’s standalone operating profit targets are 5.4 billion won in 2026, 50 billion won in 2027, and 170 billion won in 2030.
Son Hyun-jung, an analyst at Yuanta Securities Korea, explained, “It’s not just the scale of profits that deserves attention. Price hikes for domestic bakery products and SKU rationalization are underway, and a strategy to leverage bakery product and production capabilities to drive overseas sales has taken shape.”
The standalone revenue target for 2030 is 2.1107 trillion won, an increase of 550.5 billion won compared to 2026. During the same period, the overseas revenue target will rise by 425 billion won, from 75 billion won to 500 billion won. The increase in overseas sales accounts for approximately 77% of the net increase in standalone revenue. He elaborated, “Even taking into account the decline in revenue resulting from the scaling back of low-margin businesses, this means that overseas bakery operations will be the core of future revenue growth.”
He emphasized, “Although our market share in the domestic mass-produced bread market is about 70%, the projected standalone operating profit margin for 2026 is only 0.3%. The low profitability relative to our high market share is the first question that arises when evaluating SAMLIP.” He added, “This year, amid rising costs compounded by the burden of safety facility upgrades and changes to factory operations, we are proceeding with price increases and SKU (stock-keeping unit) optimization.”
In September, domestic product prices were raised by approximately 9.4%. Initial sales figures tallied through the 28th showed no sign of the decline initially feared. Analyst Son noted, “If sales volume remains stable following the price hike, this will serve as evidence that high market share translates into actual pricing power and profit improvement.”
In addition, the company is in the process of phasing out low-margin SKUs. It plans to reduce the approximately 30% of low-profitability SKUs—out of a total of about 2,200—by the end of the year. This involves eliminating products that, while previously maintained to sustain sales, contribute little to profits relative to their production and logistics costs. He added, “The domestic bakery OPM (operating profit margin) target will rise from 1.6% in 2026 to 4.6% in 2027 and 5.0% in 2028. The year 2027, when price increases and SKU optimization are both reflected, will be the first test of the core business’s profitability in the domestic market.”