[Click eStock] "HiteJinro Drives Market Share with Terra and JinroIsBack"

Shinyoung Securities Issues 'Buy' Investment Opinion and Sets Target Price at 53,000 Won... Closing Price on 24th at 33,800 Won

[Asia Economy Reporter Kum Boryeong] As HiteJinro increases its market share in the alcoholic beverage market with Terra and Jinro Is Back, Shin Young Securities has issued a 'Buy' investment opinion on HiteJinro with a target price of 53,000 KRW. The closing price on the 24th was 33,800 KRW.

According to Shin Young Securities on the 25th, despite an unfavorable external environment, HiteJinro maintains average monthly sales of 3 million boxes of Terra and 1 million boxes of Jinro Is Back. The beer market share has risen close to 40%, and the soju market share is expected to exceed the mid-60% range within the year.

Researcher Kim Jeongseop of Shin Young Securities explained, "Since its launch in March last year, Terra's sales volume has continued to soar. Through aggressive marketing and word of mouth, new terms like 'Tejina (Terra + Jinro Is Back)' and 'Tesla (Terra + Chamisul)' have become popular, leading to a successful hit." He added, "This year, HiteJinro's beer segment sales are estimated to increase by 13.1% year-on-year to 822.1 billion KRW, with performance improvement continuing due to strong Terra sales."

Jinro Is Back, launched in April last year, is also enjoying success. Jinro Is Back surpassed 100 million bottles sold within seven months of its launch. Researcher Kim said, "This year, HiteJinro's soju segment sales are expected to increase by 13.6% year-on-year to 1.3133 trillion KRW." He analyzed, "Jinro Is Back actively utilized content in line with the newtro trend, which directly contributed to the rise in performance."

In the second half of the year, competition intensified, and concerns about market contraction arose due to the resurgence of COVID-19, causing HiteJinro's stock price to fall more than 20% from its previous high. Researcher Kim stated, "The concerns everyone knows are soon buying opportunities. The trend of increasing market share in both soju and beer remains valid, and the easing of promotional activities is expected to continue into the third quarter. Once COVID-19 eases, the suppressed consumer sentiment is likely to lead to explosive alcohol consumption. Currently, valuation pressure has also eased, making it a suitable time for re-entry."