Lotte Shopping’s profits will take a sharp upturn this year, said KB Investment and Securities on Feb. 9, maintaining a “buy” recommendation and raising the target price to 300,000 won (US$274.22) from 280,000 won.
Boosted by the low baseline effect and sales of discount stores in China, its operating profit this year will leap 59 percent on-year to 835 billion won, forecast analyst Park Sin-ae. As the relationship between China and Korea recovers from THAAD row, profits from department stores in Korea and discount stores overseas will rise significantly, according to the analyst.
Although its earnings guidance stated that operating profit from the fourth quarter last year fell 26 percent on-year to 269 billion won, taking aside one-off income from a tax refund that were included in last year’s fourth quarter figure, it was 33 percent higher, noted Park.
Its stock price, at 60 percent of its price-to-book ratio, is also attractive, she added.
By Hwang You-mee (email@example.com