April 27, 2024
Stocks & Bonds
[EQUITIES] ‘Shinsegae to post decent Q4 earnings’
[THE INVESTOR] Shinsegae will post decent earnings in the fourth quarter last year, said NH Investment and Securities on Jan. 16, maintaining a “buy” recommendation and 300,000 won (US$254.78) target price.
It will beat market expectations with 1.82 trillion won revenue and 112.6 billion won operating profit, said analyst Lee Ji-yeong.
“The department stores’ revenue growth rate on a standalone basis will reach 15 percent, as it has successfully revamped its Centum and Gangnam branches and opened Gimhae, Hanam and Daegu branches. Its online sales have also surged,” explained the analyst.
The duty-free stores will post 186 billion won revenue and 12.5 billion won operating loss. Its sales are growing fast as more brands have been brought in and online sales continue to expand, noted Lee.
“Its loss is shrinking as well, due to stabilizing sales and administration costs and economies of scale.”
The analyst estimated that the retail giant’s revenue this year will reach 7.64 trillion won and operating profit 312 billion won, adding that its stock price has hit the bottom from worsening consumer sentiment and unfavorable duty-free industry conditions, but the company is solid.”
Its stock price has fallen excessively from external variables and now is the time to purchase, recommended Lee.
By Hwang You-mee (glamazon@heraldcorp.com)
It will beat market expectations with 1.82 trillion won revenue and 112.6 billion won operating profit, said analyst Lee Ji-yeong.
“The department stores’ revenue growth rate on a standalone basis will reach 15 percent, as it has successfully revamped its Centum and Gangnam branches and opened Gimhae, Hanam and Daegu branches. Its online sales have also surged,” explained the analyst.
The duty-free stores will post 186 billion won revenue and 12.5 billion won operating loss. Its sales are growing fast as more brands have been brought in and online sales continue to expand, noted Lee.
“Its loss is shrinking as well, due to stabilizing sales and administration costs and economies of scale.”
The analyst estimated that the retail giant’s revenue this year will reach 7.64 trillion won and operating profit 312 billion won, adding that its stock price has hit the bottom from worsening consumer sentiment and unfavorable duty-free industry conditions, but the company is solid.”
Its stock price has fallen excessively from external variables and now is the time to purchase, recommended Lee.
By Hwang You-mee (glamazon@heraldcorp.com)
