May 08, 2024

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[THE INVESTOR] BGF Retail’s profit is growing much faster than its revenue since the third quarter last year thanks to its margin promotion strategy, and the prospect remains bright, said Mirae Asset Daewoo on Feb. 10, slightly raising the target price to 120,000 won (US$104.01). 

Its operating profit in the fourth quarter leaped 56 percent on-year to 55.5 billion won, almost 24 percent higher than market estimates, while its revenue rose 16 percent to 1.32 trillion won. 

The retailer’s operating profit and revenue this year will hike 31.1 percent and 13 percent, respectively, forecast analyst Lee Jun-gi, adding that the number of its stores will increase by 1,100 and the decline in tobacco sales will not have much effect on its earnings. 

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