South Korea: Hite Jinro’s beer market share expected to increase

Hite Jinro’s soju and beer market share will rise, said Dongbu Securities on Aug. 23, maintaining a “buy” recommendation and 31,000 won (US$27.44) target price, The Investor reports.

Its rival Muhak’s dominance in Busan and South Gyeongsang Province is weakening. Combined with expanded soju making facilities in Masan and continued marketing campaign targeting the region, the liquor company will strengthen its foothold, said the securities firm.

Its flagship Chamisul soju remains strong in the metropolitan area while rivals are burdened by excessive manufacturing line expansion, added the firm, estimating that its soju market share has climbed to 52 percent.

Lotte Chilsung’s aggressive launching campaign targeting restaurants has heightened competition in the beer sector, but sales of regular beer may stop sliding in August. Growing demand for its lower-priced beer FiLite will boost its factory operation rates, said analyst Cha Jae-heon.

Its stocks rebounded thanks to the decent second-quarter earnings and considering the strong advantage it has, the likelihood of market dominance recovery will continue to bolster its stock price, said the analyst.

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