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Hite Jinro soju products are on display. (Photo = Yonhap news data photo) |
[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities expects Hite Jinro's annual operating profit to recover to 200 billion won this year.
NH Investment & Securities made the remarks in a report on the 9th, maintaining its investment opinion on Hite Jinro and its target stock price of 28,000 won.
"Although the domestic liquor market continues to be sluggish due to reduced dining culture, the base of operating profit is low due to increased marketing costs following the launch of new products last year, and it is expected that the burden of rising manufacturing costs will be significantly eased due to the increase in factory prices in November last year," said NH Investment & Securities Co.
NH Investment & Securities said, "As the highest operating profit growth in the food and beverage industry is expected, the upward trend of corporate value based on earnings turnaround will be possible."
Hite Jinro's consolidated sales in the first quarter rose 4 percent year-on-year to 628.8 billion won and operating profit rose 23 percent to 47.6 billion won. This is in line with the market consensus.
Sales in the soju sector are estimated at 372.4 billion won and beer at 280 billion won, respectively.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
