April 26, 2024

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[THE INVESTOR] Shinsegae International will satisfy growing expectations in the fourth quarter last year, said NH Investment and Securities on Jan. 22, maintaining a “buy” recommendation and raising the target price to 74,000 won (US$69.31).

Its revenue will come in at 331.7 billion won with operating profit of 19.3 billion won, boosted by the strong sales across sectors, improving cosmetics sales and shrinking loss from online channels, said analyst Lee Ji-yeong.

Its earnings this year will take a leap, and revenue will reach 1.25 trillion won and operating profit 48.1 billion won, estimated the analyst. 

Cosmetics will begin to contribute to profits in earnest this year and in the longer perspective will gain from vertical integration of the business, noted Lee. 

Shinsegae International has started out as a distributor of imported fashion brands but is expanding its business horizons including its own apparel brand as well as cosmetics and lifestyle goods, she added.

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