[Featured Stock] 'Surprise Earnings' HiteJinro Up Over 3%

HiteJinro's stock price is gaining momentum after recording an earnings surprise in the second quarter of this year, driven by the effect of soju sales. As of 9:25 a.m. on the 14th, HiteJinro was trading at 21,650 KRW, up 650 KRW (3.10%) from the previous trading day.

In the second quarter, HiteJinro reported consolidated sales of 665.2 billion KRW and operating profit of 68.2 billion KRW, exceeding market expectations. On the same day, Kyobo Securities maintained a buy rating and a target price of 29,000 KRW for HiteJinro.

Researcher Kwon Woo-jung of Kyobo Securities explained, "Despite the sluggish liquor market in the second quarter, HiteJinro performed relatively well in the soju market through Jinro's new products. In terms of profit, it also held up due to reduced marketing expenses and the effect of price increases. On a consolidated basis, marketing expenses decreased by at least 24 billion KRW compared to the same period last year. The marketing expense base burden was low due to the launch of Kelly in April last year."

He added, "The normalization of soju exports from the second quarter is also positive. With the completion and operation of the soju factory in Vietnam next year, the overseas sales ratio, which is currently only 10%, is expected to expand."