HiteJinro, Stock Price Expectations Rise Amid Terra and Jinro Solo Dominance

Hanwha Investment & Securities Report,
Impact of Terra and Jinro Market Share Expansion
Q2 Operating Profit Expected to Increase by 320%

[Asia Economy Reporter Minji Lee] Despite the impact of the novel coronavirus infection (COVID-19), HiteJinro is expected to see a significant increase in performance due to the consecutive successes of 'Terra' and 'Jinro Is Back.'

According to Hanwha Investment & Securities on the 11th, HiteJinro's sales in the second quarter are expected to reach 582.9 billion KRW, and operating profit 44.5 billion KRW, increasing by 11% and 320% respectively compared to the same period last year. Although outdoor activities were restricted due to COVID-19, strong demand for Terra and Jinro Is Back, which were launched the previous year, is expected to drive favorable performance.

By business segment, beer sales are projected to increase by 11%. Terra is expected to show solid growth by expanding in the home-use sector. Soju sales are forecasted at 325.2 billion KRW with operating profit of 39 billion KRW, increasing by 12% and 45% respectively.

Son Hyoju, a researcher at Hanwha Investment & Securities, said, "Despite the COVID-19 situation, demand for Jinro Is Back products continues," adding, "With the reduction of marketing activities for commercial use due to COVID-19, operating profit is expected to increase significantly."

Although competitors are facing difficulties recently, HiteJinro is expected to attract concentrated demand through consecutive new product successes. While marketing expenses may increase entering the peak season, market share expansion is expected to continue given the unfavorable conditions of competitors.

Researcher Son emphasized, "Despite increased costs, profit improvement will continue due to the alleviation of fixed cost burdens from higher operating rates," and added, "Expectations are raised as both beer and soju are expected to expand their market share in the alcoholic beverage market."

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