GS Retail, too cheap ... Attention to convenience store recovery (Hana Financial Investment)

Analysts suggest that GS Retail is undervalued.

In a report on the 26th, Hana Financial Investment said, "The operating profit for the second quarter was 42.8 billion won, which was far below expectations."

Hana Financial Investment continued, "Convenience store and hotel businesses are improving, and the supermarket and H&B businesses are also experiencing restructuring effects."

Hana Financial Investment said, "Although GS Fresh's losses are continuing, the development business is offsetting it, and the home shopping business is a business that can consistently generate an operating profit of around KRW 140 billion per year."

Hana Financial Investment also explained, "GS Retail plans to invest 240 billion won in the acquisition of Yogiyo, but we view it as neutral considering the expansion of quick commerce and the expansion of online businesses such as home shopping and GS Fresh."

Hana Financial Investment maintained a BUY rating on GS Retail, while lowering its target price to KRW 40,000.

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com