[Click eStock] "Zinus, Expected Expansion in Mattress and Furniture Sales"

[Asia Economy Reporter Minji Lee] Daishin Securities maintained a buy rating on Jinus on the 2nd, expecting performance growth in the mattress and furniture markets this year. However, the target price was lowered by 6% from the previous level to 120,000 KRW.

In the fourth quarter, Jinus recorded sales of 249.9 billion KRW, a 49% increase compared to the same period last year. Operating profit was 29.6 billion KRW, up 231% during the same period. Sales met market expectations (247.1 billion KRW), but operating profit fell short of the 35 billion KRW forecast.

Researcher Han Kyung-rae of Daishin Securities stated, “At the Indonesian Plant 2, costs and labor expenses increased during the process of changing mattress raw materials from Chinese to non-Chinese to avoid US anti-dumping related indirect exports. The cost of sales ratio in Q4 was 70.2% due to expanded hiring in IT and marketing, and employee salaries increased by 43% compared to the previous quarter.”

This year, sales are expected to increase by 22.3% from the previous year to 993.3 billion KRW, and operating profit is expected to rise by 39% to 144.8 billion KRW. This is based on the expectation of strengthening the customer portfolio in the US mattress market and expanding the living room furniture lineup.

Researcher Han said, “Sales to Walmart through the omnichannel, which was a major growth factor for Walmart’s sales, are expected to continue growing. In the furniture market, about 60 new products will be launched this year, sustaining growth.”

The company also plans to accelerate its entry into the global market. This year, it plans to enter Europe including Germany and Spain, as well as Singapore and Vietnam. The researcher added, “Global sales through Amazon and Walmart are expected to increase by 55% from the previous year to 78.9 billion KRW this year. Improvements in cost ratio are also expected through productivity enhancement and increased operating rate at Indonesian Plant 2.”

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