[Featured Stock] Jinus Hits Another 52-Week High... Soars on Q3 Earnings Expectations

Record High Again After 2 Trading Days
Hyundai Department Store Group's 'Painful Finger'
Profitability Improvement Trend Accelerates This Year

Jinus, which is set to announce its third-quarter earnings in a week, continues its 52-week record high rally.

As of 9:30 AM on the 28th, Jinus is trading at 24,850 KRW, up 1,500 KRW (6.42%) from the previous trading day. It has once again surpassed the 52-week high of 24,300 KRW recorded on the 24th. Jinus has shown a solid stock price trend with an increase of about 27% since the beginning of this month.

Jinus is a mattress company acquired by Hyundai Department Store in 2022. The acquisition amount was 878.9 billion KRW, marking Hyundai Department Store's largest-ever merger and acquisition (M&A). However, due to the global economic downturn and rising raw material prices, profitability declined, making it a "pain point." Last year, on a consolidated basis, Jinus recorded sales of 952.3 billion KRW and an operating profit of 18.3 billion KRW, down 17.9% and 72%, respectively, compared to 2022.

This year, Jinus is recovering profitability through resolving client inventory issues, regaining price competitiveness, and ODM (Original Design Manufacturing) for major offline clients in the U.S. The third-quarter earnings, to be announced on November 4, are expected to return to profitability. Market forecasts for the third quarter are sales of 238 billion KRW and an operating profit of 4 billion KRW. The securities industry expects that with improved earnings, the stock price revaluation will continue.