National Pension Service's Top Pick for the Second Half of the Year is 'Zinus'

Among stocks with over 5% ownership
the only one to acquire additional shares
Increased stake from 5.02% to 8.16%

Strong mattress and furniture sales
US factory operation and price hikes favorable
Expectations for stepped growth in second half

Photo by Jinus Provided.

[Asia Economy Reporter Park Jihwan] The National Pension Service, a major player in the capital market, has attracted attention by adding shares of mattress company Zinus to its shopping cart among major holdings in the second half of this year. The expected full-scale improvement in performance starting in the second half is cited as the reason for this choice.

According to financial information firm FnGuide on the 12th, the National Pension Service is the only one among listed companies with more than 5% stakes to have increased its holdings in Zinus in the second half of this year. On the 1st, the National Pension Service purchased 161,055 common shares (1.02%) of Zinus, raising its total holdings to 1,289,167 shares (8.16%).

The National Pension Service has been steadily increasing its stake since it first held more than 5% of Zinus shares at the end of last year. Previously, it made concentrated purchases of Zinus shares on January 26 (147,561 shares), March 11 (87,143 shares), and May 25 (169,542 shares). The National Pension Service's stake in Zinus has increased by 3.14 percentage points (565,301 shares) from 5.02% (723,866 shares) at the end of last year to 8.16% recently.

Zinus's main revenue components are mattress and bedroom furniture sales. Based on last year's sales, mattresses accounted for 51.9% and bedroom furniture 44.5%. By region, the U.S. market dominates with 89%, and online sales account for 80%.

In the securities industry, the start of operations at the U.S. factory and price increases are expected to lead to a full-scale stepwise growth in the second half of this year, which is seen as driving the National Pension Service's net buying activity. Hyunwook Kim, a senior researcher at Shinhan Financial Investment, said, "With the U.S. factory starting operations in the second quarter, monthly production of 100,000 foam mattresses is expected within the second half. Competitors are also raising prices to maintain profitability, so Zinus's sales growth through price increases in the second half is anticipated."

Zinus's annual sales and operating profit for this year are projected to increase by 27.3% and 63.3%, respectively, to 1.2591 trillion KRW and 141.6 billion KRW compared to the previous year. As of the 9th, Zinus's stock price closed at 103,500 KRW, up 10.14% this year. Securities firms believe there is ample room for Zinus's stock price to rise due to clear performance improvements. The average target price for Zinus in the securities industry is 124,625 KRW.