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The Korea Herald
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THE INVESTOR
March 28, 2024

Stocks & Bonds

[EQUITIES] ‘Hyundai Department Store needs time to rebound’

  • PUBLISHED :February 10, 2017 - 13:52
  • UPDATED :February 10, 2017 - 13:52
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[THE INVESTOR] Hyundai Department Store’s fourth-quarter operating profit failed to reach market estimates at 121 billion won (US$104.88 million), and it will take time for its earnings to rebound, said NH Investment and Securities on Feb. 10, lowering the target price to 130,000 won from 190,000 won.

The overall sales shrunk and regional branches including those in Ulsan, and Busan in particular were hit hard, said analyst Lee Ji-yeong. 




In December, a duty-free store will open at its COEX branch, taking over three floors, and the branch, one of its major stores, will experience decline in revenue following the rearrangement of shops, starting from the latter half of this year, forecast the analyst. 

Considering the heightening competition among duty-free stores, it is likely that the company will suffer an operating loss in the beginning, raising the uncertainties for its earnings, noted Lee.

The slow growth of department store business and the uncertainties regarding the duty-free store, however, are reflected in the stock price, said the analyst maintaining a “buy” recommendation. 

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

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