[Click eStock] "HiteJinro, Strong Q3 Performance Despite Social Distancing"

Kiwoom Securities Issues 'Buy' Investment Rating and Sets Target Price at 57,000 Won... Closing Price on 13th at 33,500 Won

[Asia Economy Reporter Kum Boryeong] Despite social distancing measures due to the novel coronavirus disease (COVID-19), HiteJinro's third-quarter performance remained solid.

According to Kiwoom Securities on the 16th, HiteJinro's consolidated third-quarter sales amounted to 624.3 billion KRW, and operating profit was 64.4 billion KRW, exceeding market consensus. These figures represent increases of 18% and 31%, respectively, compared to the same period last year.

Park Sangjun, a researcher at Kiwoom Securities, analyzed, "Considering that social distancing was strengthened mainly in Seoul and the metropolitan area from mid-August, the solid performance is deemed significant."

Beer sales on a standalone basis grew by 23% compared to the previous year. Terra's market share (M/S) expanded. Sales of imported beers such as Blanc, Somersby, and Paulaner also turned to growth compared to the previous year.

Demand in the liquor market is expected to gradually rebound from the bottom. Researcher Park stated, "Although the possibility of a COVID-19 resurgence cannot be ruled out, social distancing measures have eased compared to August and September, improving demand in commercial channels mainly in Seoul and the metropolitan area. Considering Terra's increased brand preference and the potential recovery of liquor market demand next year, it is judged that relatively high profit growth within the industry will continue next year."

Kiwoom Securities gave HiteJinro a 'Buy' investment rating with a target price of 57,000 KRW. The closing price on the 13th was 33,500 KRW.