[Infostock Daily= Reporter An Hoe Hyun] Hana Financial Investment predicted on the 25th that Lotte Himart's operating profit in the third quarter will increase significantly due to a decrease in rent · labor costs due to the closure of its sluggish stores and a decrease in advertising promotion costs. Investment opinion 'BUY' and target stock price remained at 47,000 won, respectively.
Hana Financial Investment predicted Lotte Himart's third-quarter operating profit to reach 60 billion won, up 79% from a year earlier.
Retail sales of durable goods such as home appliances · furniture are on the rise as people spend more time at home in the wake of the new coronavirus infection(COVID-19). It is predicted that the operating profit ratio in the third quarter will rise 2.4% points year-on-year to 5.8% as sales and administrative expenses also decreased by nearly 7% due to the reduction in rent · labor costs due to the closure of sluggish stores and the reduction in advertising promotion costs under the cost-efficiency policy.
"Lotte Himart is becoming the No. 1 consumer electronics company in Korea at a time when demand for consumption is rapidly shifting from intangible products such as travel to tangible products such as home appliances due to the COVID-19 incident," the company said, adding, "Lotte Hi-Mart will continue its high performance momentum by improving profitability due to the efficiency of store scraps and sales and administrative expenses."
Reporter An Hoe Hyun ahh@infostock.co.kr
