[THE INVESTOR] Shinsegae will continue steady earnings next year as its department stores remain solid and duty-free stores recover, said Shinhan Investment on Dec. 1, raising the target price to 390,000 won (US$358.39) from 310,000 won.
Its fourth-quarter revenue will rise 12.5 percent on-year to 2.02 trillion won and operating profit by 30.6 percent to 137.9 billion won, maintaining a trend similar to the previous quarter which was been a high season, explained analyst Park Heui-jin.
The upturn will continue next year and revenue in 2018 will increase 8.6 percent on-year to 7.94 trillion won and operating profit by 12.2 percent to 371.6 billion won, estimated the analyst.
The postponed closure of Incheon branch until end-2018 has eased concerns over earnings and although the closing of a major store is regretful, it has earned time for its duty-free sector to recover, noted Park maintaining a “buy” recommendation.
By Hwang You-mee (email@example.com)