[Click eStock] "HiteJinro, Performance Improvement Trend Continues Throughout This Year"

Korea Investment & Securities Issues 'Buy' Rating and 54,000 KRW Target Price... Closing Price on 22nd at 42,900 KRW

Photo by Asia Economy DB

[Asia Economy Reporter Kum Boryeong] As HiteJinro is expected to show strong performance in the second quarter, on the 23rd, Korea Investment & Securities issued a 'Buy' investment opinion with a target price of 54,000 KRW. The target price was revised upward from the previous 47,000 KRW. On the 22nd, HiteJinro's closing price was 42,900 KRW.

According to Korea Investment & Securities, HiteJinro's second-quarter earnings are estimated at 601 billion KRW in sales and 43 billion KRW in operating profit, representing increases of 15% and 307% respectively compared to the previous year.

The significant performance improvement trend that began in the first quarter is expected to continue throughout this year. A virtuous cycle structure of 'brand power → increased sales volume → market share growth → higher factory utilization rate → leverage effect' is ongoing.

Lee Jeong-eun, a researcher at Korea Investment & Securities, stated, "The beer and soju markets in the second quarter are estimated to have decreased by 10% and 6% respectively compared to the same period last year. However, HiteJinro's beer and soju sales volumes are understood to have increased by the mid-teens percentage compared to the same period last year, showing a good sales trend." She added, "Additionally, there was the issue of a competitor's strike. At the beginning of the strike, there were concerns that the competitor was pushing inventory to liquor wholesalers, which raised worries about a decrease in HiteJinro's sales volume, but this is considered an unfounded concern. At this point, entering the peak season, wholesalers cannot ignore the sufficient demand for HiteJinro products."

She continued, "Although the competitor's strike issue began in mid-June, sales in June remained steady," and added, "During the peak season, the competitor's strike is more likely to act as a positive factor rather than a concern."

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