[Click eStock] "Zinus, Favorable Environment Expected Next Year"

Mirae Asset Daewoo Issues 'Buy' Investment Rating and Sets Target Price at 150,000 Won... Closing Price on 4th at 104,000 Won

Zinus Green Tea Memory Foam Topper (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Bo-ryeong] An analysis suggests that the environment surrounding Zinus will become more favorable next year.

On the 7th, Mirae Asset Daewoo gave Zinus a 'Buy' investment rating with a target price of 150,000 KRW. The closing price on the 4th was 104,000 KRW.

This year has been eventful for Zinus. There were issues such as sluggish external growth due to U.S. and global logistics problems caused by COVID-19, and uncertainties related to anti-dumping measures.

Kim Myung-joo, a researcher at Mirae Asset Daewoo, said, "The global logistics crisis still exists. In the short term, it will suppress Zinus's sales compared to the high market demand," but added, "The logistics crisis is evidence that U.S. consumers, who have a low online penetration rate, are increasingly relying on online channels. Zinus has an online sales ratio of over 80%. This is why we need to focus on the mid- to long-term trend of online market growth rather than short-term noise. Next year, the company is expected to start expanding its furniture category, beginning with sofas."

A favorable environment is expected next year. The U.S. Department of Commerce has decided on preliminary anti-dumping tariffs for mattress manufacturers from seven countries, including Indonesia. Zinus's tariff rate was 2.6%, while competitors faced rates ranging from 13% to 990%.

Researcher Kim analyzed, "The share of mattress imports from six countries (excluding Indonesia from the seven countries) accounts for over 60% of U.S. mattress imports. Zinus, which has already secured a production plant in the U.S., clearly benefits relatively," and added, "Considering the new U.S. factory, mattress production capacity (capa) is expected to expand by about 50% compared to the current level."

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