[Click eStock] "Zinus, Positive Mid- to Long-Term Outlook"

Korea Investment & Securities Issues 'Buy' Rating and Target Price of 116,000 Won... Closing Price on 10th at 74,300 Won

Zinus Mattress (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that the mid- to long-term outlook for Jinus is favorable.

According to Korea Investment & Securities on the 11th, Jinus' sales increased by an average of 40% annually from 2014 to 2019, thanks to the growth of the online mattress market.

Kim Chiho, a researcher at Korea Investment & Securities, explained, "With a focused strategy of 'affordable product prices' and 'timely reflection of shopping mall reviews,' Jinus has achieved the industry's best profitability. This differentiates it from competitors who suffer losses due to aggressive marketing." He added, "With core competitiveness in key global markets (the United States) for core furniture (beds), there is vast potential for regional and product expansion in the mid to long term." Sales and operating profit for this year are estimated to increase by 14% and 28% year-on-year, reaching 934 billion KRW and 155 billion KRW, respectively.

Online shopping has become the trend in the furniture and mattress industry. It is known that there are already more than 175 online mattress sellers in the United States, and the share of online sales in the mattress and furniture industry has been increasing every year. Online mattress sales, which were less than 5%, jumped significantly to 16% in 2018.

Researcher Kim said, "Jinus was the first in the world to commercialize small box-packaged mattresses in 2005, building technological capabilities early on for online furniture manufacturing and sales business. Jinus, which had grown as an offline OEM manufacturer, successfully transformed its business structure in 2014 by selling its own brand products online." He analyzed, "As of 2018, Jinus' online sales accounted for 82%, and the cumulative number of reviews reached 420,000, establishing itself as a leading company in the online furniture market."

Korea Investment & Securities gave Jinus a 'Buy' rating with a target price of 116,000 KRW. The closing price on the 10th was 74,300 KRW.

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