[Alpha Biz= Paul Lee] Korea Investment & Securities announced on July 18 that it is maintaining a Buy rating and a target price of KRW 29,000 for HiteJinro (000080), despite expectations of weaker Q2 earnings. The stock closed at KRW 21,400 the previous day.



Analyst Eunji Kang projected HiteJinro’s Q2 revenue at KRW 664.7 billion, down 0.1% year-over-year, with operating profit falling 8.6% to KRW 62.4 billion—both below market consensus.



"The prolonged weakness in the dining-out market has likely limited shipment growth for both soju and beer, resulting in a higher fixed-cost burden," Kang explained.



Soju Segment

Revenue is estimated at KRW 404.9 billion (+0.9% YoY)

Operating profit at KRW 56.3 billion (–2.6% YoY)
Kang noted that while soju shipments were limited in Q2 following a demand spike in Q1, rising exports are expected to offset potential sales declines.



Beer Segment

Revenue is projected at KRW 200.8 billion (–2.6% YoY)

Operating profit at KRW 9.5 billion (–8.4% YoY)
 

 

 

She added that while HiteJinro saw beer shipment increases in April–May after a Q1 dip due to rival price hikes, sluggish restaurant demand in June likely dragged down overall quarterly results.



The company raised average beer shipment prices by 2.7% in June, but the impact is expected to be reflected only modestly in the second half.



Kang concluded, “With the slow recovery of the dining-out sector, a near-term rebound in the domestic alcoholic beverage market remains limited. However, HiteJinro is expected to defend soju shipment volumes using its market leadership, while maintaining its brand-driven strategy in beer with Terra and Kelly.”



She also emphasized the long-term outlook: “Following the operational launch of its Vietnam factory by end-2026, faster overseas revenue growth and margin improvement are expected.”

 

 

 

 

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