Hanwha Investment & Securities diagnosed GS Retail that its operating performance has bottomed out.
However, the company maintained its investment opinion "buy" and target stock price of 60,000 won, saying that it is expected to improve its operating performance following the merger.
"We expect the growth rate of existing convenience stores to reach ~ 0% in the third quarter," Hanwha Investment & Securities said. "We do not expect the growth rate of existing stores to be high, but we recommend you to take a positive view.".
"There is a high possibility that the margin ratio will improve due to the product mix, and we believe that it has been gradually improving since the first quarter.
The main reason for the decline in all companies' business performance is the digital division and we expect an increase in combined operating profit from the merger of GS Home Shopping," said Hanwha Investment & Securities.
Hanwha Investment & Securities expected GS Retail's future operating performance to improve in the wake of the merger.
Reporter Lee Ji-sun stockmk2020@gmail.com
