Shinhan Financial Investment predicted on the 11th that Lotte Chilsung's beer business will turn into profits from next year.
Reflecting faster-than-expected earnings improvement and a rise in global peer value, the target price has been raised from 170,000 won to 180,000 won. The investment opinion remained 'buy'.
Lotte Chilsung posted sales of 698.8 billion won in the third quarter, up 8.3 percent from a year earlier. Operating profit rose 46.3% to 85.4 billion won over the same period, exceeding the market consensus (estimated performance).
"The beverage sector is meeting growth and profitability at the same time as the high-yield carbonate category grows," Shinhan Investment said.
"The liquor, which has been in the red since 2017, will succeed in turning a surplus from this year.". Shinhan Financial Investment added, "We expect the beer business, which cannot avoid deficits until this year, to turn into a surplus from next year.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com