[Weekly HOT Stocks] HiteJinro's Unstoppable Run... Thanks to 'Tesla'

On the 24th, the price briefly reached 47,050 KRW during trading hours, setting a new 52-week high record

HiteJinro's 'Terra' (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] Riding the wave of popularity of 'Tesla (Terra + Chamisul)', HiteJinro's stock price continues its unstoppable surge.

According to the Korea Exchange on the 27th, HiteJinro's stock price reached an intraday high of 47,050 won on the 24th, setting a new 52-week high.

Looking at the trend over the week, the closing price on the 19th was 43,000 won, which rose to 44,350 won on the 26th, marking a 3.14% increase in just one week. This contrasts sharply with the KOSPI index, which fell by 0.31% from 2,141.32 to 2,134.65 during the same period.

Behind HiteJinro's rapid rise is Tesla. According to Kiwoom Securities, the flagship product Terra is increasing its market share (MS) not only in the commercial channel but also in the home-use channel. The estimated sales of Terra for the second quarter are 112.5 billion won. The domestic beer market share is expected to be in the low 40% range. Thanks to the strong sales of Jinro, a new soju product launched last year, quarterly sales are likely to maintain around 300 billion won.

Park Sangjun, a researcher at Kiwoom Securities, explained, "Consumer preference for HiteJinro's main brands Terra, Chamisul, and Jinro remains high, and sales growth is steady, so it is highly likely that the company's operating profit for the second quarter will exceed market expectations."

HiteJinro's 'Jinro Is Back' (Photo by Asia Economy DB)

Han Yujeong, a researcher at Daishin Securities, analyzed, "Terra, launched by HiteJinro last year, has successfully established itself in the regular beer market. At the same time, production efficiency improvements have accompanied fixed cost reductions, which is expected to enhance profit resilience going forward."

In the second half of the year, high sales growth is expected to continue, mainly driven by increased beer sales in the home-use channel. This is because demand in commercial channels is recovering as some outdoor activities resume. Penetration is also rising in the home-use channel, especially among small stores.

Accordingly, securities firms have raised their target prices for HiteJinro. Kiwoom Securities revised its target price from 48,000 won to 57,000 won, and Daishin Securities raised it from 47,000 won to 50,000 won.

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