April 21, 2024
Stocks & Bonds
[EQUITIES] ‘Shinsegae’s Q1 earnings beat market expectations’
[THE INVESTOR] Shinsegae’s department stores and subsidiaries remain solid while losses from duty-free business will shrink, said Shinhan Financial Investment on April 19, raising the target price to 235,000 won (US$205.73) from 220,000 won and maintaining a “buy” recommendation.
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Its operating profit in the first quarter will rise 9.9 percent on-year to 63.8 billion won, and revenue will hike 27.9 percent, estimated analyst Park Heui-jin.
Although the daily average revenue from duty-free stores are hurt by the decline in Chinese tourists, operating loss that reached 55.8 billion won last year will be lower, said the analyst.
Shinsegae International’s operating profit improved since it folded the loss-making brand Salomon, and department stores continue to perform solidly, said Park.
By Hwang You-mee (glamazon@heraldcorp.com)
