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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘BGF Retail to benefit from deal with Philip Morris’

  • PUBLISHED :May 22, 2017 - 13:48
  • UPDATED :January 12, 2018 - 09:46
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[THE INVESTOR] BGF Retail’s sales deal with Philip Morris for new e-cigarettes will benefit it, said Samsung Securities on May 22, raising the target price to 138,000 won (US$123.55) from 130,000 won and the estimated net profit from the second quarter. 




IQOS a battery-powered cigarette device with tobacco leaves will begin to sell from June 6, and the convenience store chain has been chosen as the first sales outlet. It is expected to gain from the increased customers, said analyst Nam Ok-jin.

The new e-cigarettes are hugely popular in Japan since its launch in the second half of 2015 and its market share has risen to over 8 percent, noted the analyst.

New regulations on convenience stores under the new administration will not affect it, but minimum wage hike is a concern, said Nam forecasting that it will lead to a gradual rise in labor costs. 

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

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