[THE INVESTOR] Hyundai Department Store is enjoying solid growth and expectations for its duty-free store remain high, said NH Investment and Securities on May 31.
Recently strong sales of luxury goods and home appliances are boosting department stores and its profitability may improve. As it prepares to open another duty-free store in November, earnings of its COEX branch will inevitably decline but the effect will be limited and the prospects are not grim, said analyst Lee Ji-yeong
The number of duty-free stores in southern Seoul will increase to four this year, and they will be able to meet the demand from private shuttle traders and group tourists. Hyundai’s current stock price, at 9.1 percent its price-earnings ratio, is at the lowest level among retailers, she said maintaining 135,000 won (US$125.28) target price.
By Hwang You-mee (glamazon@heraldcorp.com)