April 26, 2024

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When Lotte Shopping spins off, it is highly possible that its overseas branches will be included in the assets to be allocated to the investing company, and this will be an opportunity for the retail company’s domestic businesses to be evaluated properly, Son Yun-kyeong, an analyst at SK Securities, said.

Son raised the target price to 300,000 won (US$260) from 240,000 won.
After the systemic change, the holding company is likely to handle Lotte Group’s overseas businesses instead of Lotte Shopping as it does not have the capacity due to the lagging business at home, Son said. 

The retailer’s domestic business, however, is past its lowest point, and the total revenue from its downtown outlets grew to 1.5 trillion won in 2016, large enough to push profits upward, Son added. 

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