Low-cost carrier Jin Air
has a stable financial structure, said HI Investment and Securities on Dec. 8 on the day of its IPO, suggesting a “buy” recommendation and 37,000 won (US$33.77) target price.
On the back of strong support from Korean Air, the budget carrier has built a solid brand image from the onset and despite a higher yield has managed to maintain passenger occupancy rate similar to those of rivals, said analyst Ha Jun-yeong.
The fact that it operates medium and large aircrafts is another strength, but the possibility of declining profits from flying in the low season could be a risk, noted the analyst.
Jin Air will invest cash from the IPO acquire new aircrafts and secure long-term growth momentum, he added.
By Hwang You-mee (email@example.com