April 27, 2024

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[THE INVESTOR] Shinsegae will maintain strong earnings trend, said NH Investment and Securities on May 11, raising the target price to 550,000 won (US$514.69) from 500,000 won.

Its revenue in the first quarter came in at 2 trillion won and operating profit beat market consensus reaching 113.3 billion won, said analyst Lee Ji-yeong.

Average daily sales from its duty-free store in central Seoul was 5.2 billion won and in the second quarter, has risen to 5.8 billion won, estimated the analyst. He forecast that the figures will be even higher in the second half of the year as inbound tourism to Korea recovers and commission rate declines. 

The retail giant will show the highest growth rate among duty-free operators as it unveils a new branch while the existing stores stabilize, said Lee, maintaining a “buy” recommendation and a “top pick” rating.

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