April 20, 2024

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[THE INVESTOR] Despite the lackluster sales from duty-free stores, Shinsegae’s department stores and online revenue boosted its bottom line, said Mirae Asset Daewoo on Jan. 18, maintaining a “buy” recommendation and 250,000 won (US$214.78) target price.

Shinsegae's main branch in central Seoul

Its revenue hiked 35.4 percent to 990.3 billion won and operating profit inched up 0.1 percent to 103.4 billion won in the fourth quarter last year, estimated analyst Lee Jun-gi.

The retail group’s stock price has been low due to the lackluster duty-free industry but the current price is based on the worst-case scenario and does not reflect the improvement in other areas, said the analyst. 

Its 2017 revenue and operating profit will surge 25.6 percent and 22.7 percent respectively, as the online mall, although still in the red, will improve its profit ratio and work as an efficient sales channel for department store goods, explained Lee.

By Hwang You-mee (glamazon@heraldcorp.com)