April 26, 2024

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[THE INVESTOR] Shinsegae International’s cosmetics business will continue to grow dramatically, said NH Investment and Securities on June 15, raising the target price to 215,000 won (US$197.63) from 170,000 won.

Monthly sales of its own cosmetics brand Vidi Vici is above 10 billion won since March. Domestic sales are growing significantly on the back of brand power and new products. In the latter half, it will further gain from expanding distribution network. It entered Dongwha and SM duty-free stores in April and will begin to sell at Shinsegae and Hyundai’s duty-free outlets in southern Seoul in July and September, respectively, said analyst Lee Ji-yeong.

Shinsegae Group’s beauty specialist Chicor is also opening new branches, and cosmetics brands are expected to benefit, forecast the analyst adding that its current stock price is not burdensome yet maintaining a “buy” recommendation. 

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