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View of Hite Jinro office. (Photo=Hite Jinro) |
[Alpha Biz= Reporter Kim Minyoung] IBK Investment & Securities has evaluated that HiteJinro holds long-term growth potential due to its soju exports. On the 23rd, the firm upgraded its investment opinion on HiteJinro to 'Buy' and raised the target price from 21,500 KRW to 27,000 KRW. HiteJinro's closing price the previous day was 22,000 KRW.
According to IBK Investment & Securities, HiteJinro's soju exports amounted to 139.4 billion KRW last year, accounting for 10% of the company's total sales. Although exports slowed in the first quarter due to a label change, the expansion trend is expected to continue on an annual basis.
IBK Investment & Securities stated, "Until 2021, liqueur products like Soonhari drove exports, but since 2022, the contribution of traditional soju like Chamisul has been increasing." They added, "For sustained exports, expanding demand for traditional soju is essential, and the globalization of soju is just beginning."
HiteJinro is constructing a soju factory in Hanoi, Vietnam. Once completed by the third quarter of 2026, overseas soju sales are expected to significantly increase from 2027. The researcher, Kim, commented, "Not only will the Southeast Asian market, including Vietnam, grow, but the Hanoi soju factory is also expected to serve as a strategic base for global soju exports."
The changing preferences in alcoholic beverages also contribute to the optimism for soju exports. IBK Investment & Securities noted, "While beer consumption in the U.S. has somewhat slowed, the demand for spirits like whiskey and brandy has increased. Given that soju is classified as a spirit locally, it could benefit from this trend shift."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
