Shinsegae will maintain its upward momentum as it diversifies its business, said Samsung Securities on March 6, maintaining a “buy” recommendation and 400,000 won (US$372.23) target price.
It is showing stronger earnings momentum and growth rate than other large caps in the retail sector, while the upward trend of its duty-free stores will continue until next year, said analyst Nam Ok-jin.
Daily revenue from its duty-free store in central Seoul has increased to 5.2 billion won in January from 4.8 billion won in December, and opening of a branch in Incheon International Airport will further boost the retailer’s revenue, she said estimating that Shinsegae’s revenue in the first quarter will spike 63 percent on-year to 406.6 billion won.
So far, its online business unit has not been properly appraised and when its investments and stake proportion are confirmed by the year-end, it will boost the company’s value, added the analyst.
By Hwang You-mee (email@example.com