April 19, 2024

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[THE INVESTOR] Lotte Shopping’s earnings will improve in the second half, said HMC Investment Securities on June 20, raising the target price to 380,000 won (US$334.21) from 330,000 won.

Its performance will improve gradually, aided by the new administration’s job creating policy that will boost household incomes and consequently domestic spending, said analyst Park Jong-ryeol.

Department stores and hypermarkets will gain from recovery in consumption while Lotte Hi-Mart, home shopping channel, convenience stores, and financial affiliates will also propel the rebound, said the analyst.

Its transformation to a holding company is pending, and with Lotte Cinema, Lotte Card, Lotte Home Shopping and Korea Seven eligible for listing, its value could be reassessed through IPOs, explained the analyst. Its offline distribution channels that range from department stores and outlets to convenience stores should be reevaluated too, he added.

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