Tiger Asset Management Acquires 5.88% Stake in S&D

Tiger Asset Management recently purchased 31,200 shares of S&D, approximately ₩10 billion, increasing its stake from 0% to 5.88%. The official purpose of the acquisition is ‘simple investment’.

Why Did Tiger Asset Management Invest ₩10 Billion in S&D?

Despite a decline in sales, S&D showed improved operating profit margins in Q1 2025 due to increased selling prices and cost reduction efforts. Maintaining a good credit rating of A and A+ is also a positive factor. This can be interpreted as a sign of a turnaround in sluggish performance and likely influenced Tiger Asset Management’s investment decision.

How Will This Investment Affect the Stock Price?

  • Potential Stock Price Increase: A large purchase by a major investment firm sends a positive signal to the market and can drive stock price appreciation.
  • Improved Investor Sentiment: The investment could improve investor sentiment and attract further buying interest.

What Should Investors Be Aware Of?

  • Simple Investment: Keep in mind that Tiger Asset Management could sell its stake at any time.
  • Macroeconomic Risks: Volatility in macroeconomic variables like raw material prices, exchange rates, and interest rates can impact S&D’s performance.
  • Intensifying Competition: Increased competition in the food industry could negatively affect S&D’s market share and profitability.

Investor Action Plan

If considering investing in S&D, carefully examine Tiger Asset Management’s investment strategy, S&D’s future earnings outlook, hedging strategies against raw material price fluctuations, overseas market entry plans, and new business plans.