April 26, 2024

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[THE INVESTOR] Lotte Hi-Mart will remain on an upturn in the fourth quarter, said Korea Investment and Securities on Dec. 22, maintaining a “buy” recommendation and 95,000 won (US$88.0) target price. 

Its fourth-quarter earnings will miss market consensus as operating profit will come in at 35.3 billion won, down 10.3 percent from the same period last year when 9.5 billion won one-off profit was reflected, said analyst Yeo Yeong-sang. 

The actual operating earnings are improving and the uptrend, similar to the third quarter, will be maintained, said the analyst. Sales in October and November has been slower than expected but are regaining fast, as new products such as dryers and purifiers are boosting the volume as revenue from online channels continue to hike, noted Yeo estimating that fourth-quarter revenue will rise 5.7 percent on-year to 1.04 trillion won.

Its current stock price is the lowest in the industry and considering the earnings prospects and sustainability, is most attractive in terms of valuation, he underlined. 

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