[THE INVESTOR] Maeil Dairies will post strong earnings in the second quarter, said Hana Financial Investment on July 12, maintaining a “buy” recommendation and raising the target price to 125,000 won (US$110.66) from 110,000 won.

Its revenue in the period will come in at 331.5 billion won with operating profit of 21.5 billion won, beating market expectations. Formula milk will struggle in domestic market as expected but slow sales will be offset by 10 billion won exports to China, said analyst Shim Eun-ju.

Cupped coffee will grow solidly thanks to favorable weather. Products with relatively higher margins including cupped coffee and organic Sangha brand will help improve product portfolio. Stabilizing prices of ingredients for its cheese products will also boost its bottom line, she added.

By Hwang You-mee (glamazon@heraldcorp.com)