Jinro shares jump on first day of trading

SEOUL, Oct. 19 (Yonhap) -- Shares of Jinro Ltd., South Korea's top maker of
alcoholic beverages, surged on Monday as the company marked its first day of
trading on the Seoul bourse.

Jinro shares rose 5.36 percent to trade at 42,250 won as of 11:33 a.m. on the
country's main bourse, surpassing the company's initial public offering price of
41,000 won.
Jinro's shares are forecast to gain ground down the road, analysts said, as a
growing market for soju, a traditional distilled liquor, and rising sales are
expected to bolster profits for the company.
"Continued growth in the soju market is predicted to draw benefits for the firm
which commands a 50-percent share of the soju market," said Lee Kyong-min, an
analyst at Hi Investment & Securities.
Jinro's earnings may also expand sharply between 2010 to 2011 due to cost cutting
measures and an expected relaxation of regulations regarding the firm's price
setting, Lee said, suggesting a price target of 50,000 won for the liquor maker.
Jinro was de-listed from the Seoul bourse in 2003 after it went bust. South
Korea's top beermaker, Hite Brewery Co., acquired the company in 2005.
Jinro's biggest shareholder is Hite Holdings Co., the parent company of Hite
Brewery, with a controlling stake of 53.46 percent.
pbr@yna.co.kr
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