[THE INVESTOR] E-mart’s profits will grow steadily from the first quarter next year, said Hana Financial Investment on Sept. 28 maintaining a “buy” recommendation and 280,000 won (US$251.64) target price.
Its market share is increasing sharply and it continues to lead the nation’s retail industry with E-mart Mall, Traders and No Brand. Considering the business hours and low baseline effect of personnel costs, the retail giant is likely to post growing profits. This will ease concerns over earnings and restore investment sentiments, said analyst Park Jong-dae, forecasting that E-mart Mall will turn to black next year and push the company’s operating profit next year to 674 billion won.
Looking at the stock price of global retailers, the combination of food, online and hypermarkets works as a premium factor for over 20 times price earnings ratio, and that of E-mart is absolutely underrated at 11 times, added the analyst.
By Hwang You-mee (email@example.com)