BGF Retail, COVID-19 re-proliferation burden...Target stock price down(NH Investment & Securities)

[Infostock Daily= Reporter An Hoe Hyun] On the 27th, NH Investment & Securities lowered its investment opinion from 'Buy' to 'Hold' and lowered its target stock price by 9.38% from the previous 160,000 won to 145,000 won for BGF Retail, saying that earnings expectations are not high due to the increase in social distance following the reproliferation of COVID-19 in the 4th quarter.

"In the case of next year, growth by opening stores will continue, but there could be store interference effects, and in the mid- to long-term, high growth in the delivery market is also a threat," the company analyzed.

In the January~September period of this year, the convenience store industry grew 3% year-on-year due to its opening, while the food delivery industry recorded a high growth of 78%. It grew sharply in March when the COVID-19 fear reached its peak and in September when the social distance rose to 2.5 levels, but considering that the growth rate was high last year, it should be seen as a structural change in the industry rather than a one-time positive factor.

Reporter An Hoe Hyun ahh@infostock.co.kr