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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Shinsegae snaps up Incheon duty-free operations’

  • PUBLISHED :June 25, 2018 - 11:00
  • UPDATED :June 25, 2018 - 11:00
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[THE INVESTOR] Shinsegae will gain from securing a license to operate duty-free stores at Incheon International Airport, said Samsung Securities on June 25, maintaining a “buy” recommendation and 520,000 won (US$466.03) target price. 




The retail heavyweight has been selected to operate two additional duty-free outlets at the airport. It won the rights beating market expectations, and its duty-free market share will rise up to 22 percent this year from last year’s 13 percent. Profitability, however, needs to be confirmed, cautioned analyst Nam Ok-jin, explaining that it has topped the bidding amount of Hotel Shilla by approximately 70 billion won annually and will consequently be burdened. 

Its duty-free sector’s revenue this year will reach 2.8 trillion won, 19 percent higher than previously estimates. Winning the bid for Incheon duty-free stores and possibility of improved profits from Chosun Hotel’s duty-free outlet will serve as a short-term momentum, she added.

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

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