[Click eStock] "Zinus Continues Steady Top-Line Growth"

[Asia Economy Reporter Park Jihwan] Mirae Asset Daewoo on the 19th presented a 'Buy' investment rating and a target price of 150,000 KRW for Jinus, expecting continued solid external growth.

Kim Myungjoo, a researcher at Mirae Asset Daewoo, said, "We expect stable external growth of Jinus in the long term," adding, "With the increase in online penetration rate, steady mattress sales are expected in the U.S., and sales in countries outside the U.S. are also expected to increase through efficient global expansion."

Researcher Kim analyzed, "In the U.S., mattress demand is expected to increase as housing starts and transactions have recently risen," and "Demand for online mattress purchases will continue to rise due to the increase in online penetration."

He predicted, "Jinus's operating profit margin is expected to improve this year," and "We can expect an operating profit leverage effect through sales growth utilizing the Chinese factory, which does not require additional manufacturing plant expansion."

He also added, "Due to the US-China trade dispute, tariffs amounting to half (12.5%) of the tariffs on products produced in China such as bed frames (accounting for 35~40% of sales) are borne as costs," and "If the trade dispute is resolved, operating profit improvement of about 4.4% to 5 percentage points is possible."

The stabilized price of raw material TDI is also a positive factor. Researcher Kim forecasted that the prices of chemical raw materials such as TDI, which account for 30~35% of mattress sales cost and 10~15% of total cost, have stabilized, and cost ratio improvement of about 1% to 1.3 percentage points can be expected until the first half of next year.

This content was produced with the assistance of AI translation services.