[Click eStock] "HiteJinro, Expecting Operating Profit Recovery"

NH Investment & Securities analyzed on the 9th that HiteJinro is expected to recover its operating profit. The investment opinion 'Buy' and the target price of 28,000 KRW were maintained.

Joo Young-hoon, a researcher at NH Investment & Securities, said, "This year, we expect an annual operating profit recovery of around 200 billion KRW, overcoming last year's disappointing performance," adding, "Last year, marketing expenses increased due to new product launches, lowering the operating profit base, and the burden of rising manufacturing costs will be largely alleviated by the effect of increased shipment prices."

He added, "Since HiteJinro is expected to have the highest operating profit growth rate within the food and beverage industry, the corporate value is likely to trend upward based on the performance turnaround."

NH Investment & Securities forecast that HiteJinro's sales and operating profit in the first quarter of this year will reach 628.8 billion KRW and 47.6 billion KRW, respectively, representing increases of 4% and 23% compared to the same period last year. By business segment, sales in the soju division are expected to be 372.4 billion KRW, and beer sales are projected at 200.8 billion KRW.

Researcher Joo said, "Although the overall demand in the soju market is declining, growth in scale is expected due to the effect of increased shipment prices," and added, "The external growth effect continues following the launch of the product 'Kelly.'"