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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘GS Retail needs long-term perspective’

  • PUBLISHED :March 28, 2018 - 11:40
  • UPDATED :March 28, 2018 - 11:40
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[THE INVESTOR] GS Retail should be approached with a long-term perspective, said Hanwha Investment and Securities on March 28, maintaining a “buy” recommendation and 36,000 won (US$33.69) target price.




Its sales environment in the first quarter seems unfriendly and revenue in the period will increase 11.2 percent on-year to 2.05 trillion won while operating profit declined 10.7 percent to 23.3 billion won, estimated analyst Nam Seong-hyeon.

Lease rate of Parnas Hotel in the period will reach as high as 98 percent but as main businesses struggle, improving earnings across the company will be challenging, said the analyst. 

In long-term perspective, though, in convenience store sector, demand remains strong and sales of cigarettes seem to be recovering, noted Nam. 

The share of leading convenience store operators will further increase after this year, as subsidies will limit profit growth this year, the share expansion will gain speed from the second half this year, forecast the analyst. 

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

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