HiteJinro, Strong Performance Continues in Q2~

[Asia Economy Reporter Park Jihwan] Shinhan Financial Investment maintained a 'Buy' rating on Hite Jinro on the 13th, stating that strong performance is expected to continue in the second quarter, and raised the target price by 8.7% from the previous 46,000 KRW to 50,000 KRW.

Heejin Park, a researcher at Shinhan Financial Investment, said, "The consolidated operating profit for the second quarter is expected to increase by 289.7% year-on-year to 41.3 billion KRW," adding, "It will show a significant profit improvement, exceeding the market expectations by more than 20 billion KRW in the first quarter."

Despite the prolonged sluggishness in the entertainment market, the rising trend in market share is ongoing. It is explained that profit improvement is expected due to margin rate improvement through sales growth and a relative decrease in promotional intensity caused by the entertainment market downturn.

In particular, expectations for continued market share growth amid the market downturn remain strong.

Researcher Heejin Park explained, "In May, TERRA's monthly sales volume rose to about 3 million bx," adding, "This represents a growth of over 1 million bx compared to the approximately 2 million bx monthly sales in the first quarter."

He added, "With the continued upward revision of earnings, valuation pressure is being lowered," and "Despite the ongoing stock price increase, there is no burden from earnings improvement, and there is sufficient expectation for reduced promotional expenses compared to forecasts."

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