Hana Financial Investment maintained its target stock price of 200,000 won and its investment opinion of "buy", saying it expects Lotte Chilsung to enhance the value of its liquor division.
Hana Financial Investment analyzed, "Even if the liquor market recovers to the first half of 2020, the first year of COVID-19, the liquor market is expected to grow 8-13% year-on-year next year.".
Hana Financial Investment said, "We expect Hite Jinro's earnings to improve as front-line demand recovers.".
Hana Financial Investment also said, "The consolidated sales and operating profit next year are estimated to increase 8.8% and 22.7% year-on-year, respectively," adding, "The key to improving next year's performance is the liquor division.".
"This year's total demand for liquor is estimated to drop more than 10% year-on-year as the strong social distance is implemented by the end of this year, and we expect to recover as the weed corona begins in November," Hana Financial Investment said.
"It should also be noted that sales of beer OEM (Original Equipment Production) are expanding.". Hana Financial Investment added, "Given the recent expansion of awareness of handmade beer and the increase in customer companies, we expect related sales to increase to KRW 80 billion next year, and expect Lotte Chilsung's beer brand and OEM combined sales to increase significantly from KRW 140 billion this year to KRW 200 billion next year.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
