[THE INVESTOR] Shinsegae International will post solid earnings in the fourth quarter, said Hana Financial Investment on Nov. 24, raising the target price to 81,000 won (US$74.74) from 74,000 won.
Its third-quarter earnings beat market expectations and showed that its improved profits by streamlining its main business can offset the costs from new businesses, said analyst Lee Hwa-yeong. Revenue in the fourth quarter will rise 13.2 percent on-year to 330.8 billion won and operating profit by 26.4 percent to 19.5 billion won, she estimated.
Consumer sentiments have changed as of September and the cold weather is pushing sales of winter coats with higher unit price, noted the analyst, forecasting that womenswear, cosmetics, lifestyle and Tomboy line will take a leap and propel growth.
Although the current stock price is not lower than those of its peers, it is at a record low, and now is the time to purchase before the fourth-quarter earnings guidance is released, added Lee.
By Hwang You-mee (email@example.com)