[Special Stock] Jinus, Market Cap Drops 400 Billion Due to Poor Earnings... Down 25%

[Asia Economy Reporter Minji Lee] Zinus is showing a sharp decline after recording poor performance in the second quarter. Its market capitalization has dropped by more than 400 billion KRW.

At 10:08 AM on the 17th, Zinus was trading at 81,600 KRW, down 24.44% compared to the previous trading day. It is estimated that the release of earnings below market expectations after the market closed on the 13th negatively impacted the stock price.

Zinus recorded sales of 251.4 billion KRW in the second quarter, a 12% increase compared to the same period last year, but operating profit was 13.4 billion KRW, a sharp decline of 54% compared to last year. Both sales and operating profit fell significantly short of market expectations of 301.8 billion KRW and 29.1 billion KRW, respectively. The impact of the COVID-19-related shutdown of the Indonesian factory and shipment delays centered on North America due to a shortage of shipping capacity were major factors.

Hyunwook Kim, a researcher at Shinhan Financial Investment, explained, “This year’s performance forecast is being revised downward reflecting the weak second quarter, continued shortage of shipping capacity in the second half, and delayed ramp-up of the U.S. subsidiary due to recruitment issues. The shift from benefits of U.S. tariff rates and market share expansion through U.S. subsidiary operations to concerns over sales growth due to shipping capacity shortages is negative for the stock price in the short term.”