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| (Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Daishin Securities expects Hite Jinro's annual operating profit to increase significantly this year.
Daishin Securities presented Hite Jinro's target stock price of 30,000 won and new BUY in its report.
"Hite Jinro's overseas sales recorded about 10% last year and has renewed its highest amount every year," Daishin Securities said. "It is expected to actively expand its overseas market by deciding to establish its first overseas plant in Vietnam to secure mid- to long-term sales beyond the limits of the domestic market."
Hite Jinro is expected to generate 2.678 trillion won in sales and 206.8 billion won in operating profit on a consolidated basis this year. Sales and operating profit are up 6.3% and 66.9% from last year. Researcher Chung cited the price increase in November last year (6.95% of soju, 6.8% of beer), the efficiency of marketing costs, and increased sales of new products.
Regarding soju, he said, "The overall soju market continues to shrink due to changes in drinking culture, such as a decrease in the drinking culture, and the volume growth is limited."
Regarding beer, he said, "The company turned into a beer deficit in the first half of last year by executing aggressive marketing expenses compared to the first half of last year to settle the new product 'Kelly' market," adding, "It is positive that the company's beer share is expanding due to Kelly's increased contribution to sales."
In addition, he added, "After the operation of the Vietnam plant in 2026, there will be an increase in overseas sales, especially in Southeast Asia, which is familiar with Korean culture."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
