Daishin Securities said on the 12th that E-Mart is showing high growth both online and offline. Investment opinion 'buy' and target stock price remained at 234,000 won.
"Based on separate corporations, sales rose 3 percent on-year to 4.3352 trillion won and operating profit fell 25 percent to 104.9 billion won over the same period," Daishin Securities said.
Daishin Securities said, "The listing rate of existing stores at discount stores in the third quarter was 1.6%, below the average (8%) in the first half.".
In addition, E-Mart Traders, like discount stores, its operating profit decreased in September due to sluggish sales and increased labor costs.
On a consolidated basis, operating profit in the third quarter was only 108.6 billion won, down 28 percent from a year earlier, falling short of market expectations.
However, Daishin Securities said, "This is because SSG.com, an online sales channel, has implemented a growth-oriented strategy since the 2nd quarter, resulting in an operating loss of 38.2 billion won in the 3rd quarter," and stressed, "The gains and losses of most of its subsidiaries except SSG.com have improved significantly.".
E-Mart 24, PK Retail Holdings, Shinsegae Food, and Chosun Hotel & Resort are all showing improvement in their third-quarter earnings.
In addition, Starbucks Coffee Korea and eBay Korea will be included in the performance based on consolidation from the fourth quarter.
"Starbucks Coffee Korea's third-quarter operating profit rose 108% on-year to 86 billion won and an operating profit ratio of 13.7%," Daishin Securities said. "As this is about half of its annual operating profit in 2019 before the COVID-19, it is expected to contribute greatly to the improvement of overall operating profit from the fourth quarter.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
