Summer is fast approaching with daytime temperatures across the country exceeding 30 degrees. The food that comes to mind when thinking of summer is ‘chimaek’ (chicken and beer). It’s delicious to eat while watching TV on weekend nights with family안전놀이터, lovers, and friends .
Hite Jinro shares fell 35% in one year
However, individual investors here are only swallowing bitter cups every day. This item is Hite Jinro. The closing price on the 19th was 23,400 won. It fell 35.18% from the share price of 36,100 won a year ago (May 19, 2022). This is the reason why investors’ interest has decreased due to the decline in beer market share.
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What about Hite Jinro’s first quarter results? Consolidated sales recorded KRW 603.5 billion (up 3.4% year-on-year) and operating profit KRW 38.7 billion (down 33.4% year-on-year). In a report, eBest Investment & Securities said, “Although profits decreased due to advertising costs for new beer, it exceeded market estimates by 8.3%.” Oh Ji-woo, a researcher at eBest Investment & Securities, said, “The soju division recorded sales of KRW 366.3 billion (a 3.5% increase from the previous year) and operating profit of KRW 43.4 billion (a decrease of 12.4% from the previous year). , Jinroisbaek accounted for 18%.” Beer recorded sales of 183.8 billion won (up 0.4% from the previous year) and operating loss of 3.5 billion won (turning to a loss).
“It is a company that succeeded in the soju two-track strategy by adding Jinloisback to Chamisul,” said researcher Oh. The target price was maintained at 32,000 won.
Kim Hye-mi, a researcher at Sangsang Certification, said, “Competition in the mainstream market is expected to become more intense due to the characteristics of the industry entering the peak season from the second quarter and the effect of ending the long-term pandemic in earnest.” It is necessary,” he advised. Researcher Kim predicted sales of 2.5897 trillion won and operating profit of 163.7 billion won this year. As of the 19th, the average target price of Hite Jinro from 10 securities companies is 30,800 won.
Hite Jinro stock price monthly graph.
“Overseas sales increased by 24% … If there is a profit, it will be shared with shareholders.”
What kind of efforts is Hite Jinro making for shareholders who are ‘suffering’ from the stock price decline? On the 20th, an official from Hite Jinro said, “Through aggressive sales marketing this year, we will revitalize Terra, establish a stable market for Kelly, and solidify our dominance in the soju market.” In particular, he added, “Kelly, which was launched last month, realized soft and intense carbonation with a double aging method using 100% Danish premium malt.” Kelly, with Son Seok-gu as the advertising model, succeeded in selling 1 million boxes in 36 days of launch. It is the shortest period among domestic beer brands (Terra broke through in 39 days).
In the soju division, Jinro’s renewal of Zero Sugar and the launch of Pink Label are gaining popularity among young people. Chamisul’s advertising model is IU, emphasizing a clear image. The company plans to increase contact points with consumers by operating a ‘playground for adults, thick store’.
IU is the advertising model for Hite Jinro’s soju brand ‘Chamisul’. Provided by Hite Jinro
When asked what the new growth engine is, he replied, “Last year, overseas sales increased by 24%. In particular, the soju division increased by 32%, showing an average annual growth rate of 17.1% over the past five years.” The response is good in the US, China, and Southeast Asia, and the plan is to expand new export countries based on the Asian region. They are actively investing in the judgment that
‘ new foods are needed ‘ . “We invested in 19 startups from 2020 to the end of last year,” he said. Hite Jinro is known to have invested in food platform company Siktak Life with Table (service name: Permil) and sports facility membership O2O (online/offline linked service) platform Stonei (service name pledged). When asked what efforts he is making for his shareholders, he said, “Last year, we paid a year-end dividend of 950 won per share (an increase of 150 won from the previous year).” .