Hana Financial Investment maintained its target stock price of KRW 48,000 and its investment opinion of "buy", saying that Hite Jinro is expected to gradually recover its performance due to a recovery in front-end demand.
"The domestic beer market in the first half of this year is estimated to fall 7% year-on-year due to COVID-19," Hana Financial Investment said in a report.
"Even if the liquor market recovers until the first half of last year, the first year of COVID-19, the liquor market is expected to grow 8-13% this year compared to the same period last year.".
As the vaccination rate is rising, Hite Jinro's earnings will improve thanks to a recovery in demand ahead.
"We estimate next year's consolidated sales to rise 8.7 percent year-on-year to 2.39 trillion won, and we expect operating profit to rise 19.9 percent to 210.4 billion won over the same period," Hana Financial Investment said.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com