April 23, 2024

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[THE INVESTOR] Lotte Shopping’s earnings in the second quarter were way below expectations, said NH Investment and Securities on Aug. 13, lowering the target price to 240,000 won (US$212.09) from 270,000 won.

Its revenue in the period stood at 4.42 trillion won, up 1 percent on-year, while operating profit slid 17 percent to 34.9 billion won, both widely missing market consensus. All sectors except department stores at home struggled, and in addition it had to appropriate 150.7 billion won for the sale of its discount stores in China, said analyst Lee Ji-yeong.

Its restructuring process will stabilize from now on and pulling out of China will show visible effects to restore profits from next year. When the sale is completed it could make profits as well, she added maintaining a “buy” recommendation. 

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