[Infostock Daily=Reporter Lee Dong-hoon] Eugene Investment & Securities maintained an investment opinion of 'Buy' for Shinsegae and raised the target price to 360,000 won.
The growth in the department store sector has been noticeable recently with the start of a low base in the same period last year, and there has been a recovery in terms of profit due to a reduction in depreciation costs at duty-free shops.
The securities firm expected, "Revenue of the department store sector in Febrauary increased by 40%. Considering its performance in March last year was the worst ever. Revenue will grow more than 50% in March."
"No matter how much the base effect is taken into account, the figure is nearly double the growth rate of the online market, which is enough to serve as a momentum for short-term stock prices. Although growth is still centered on luxury goods and home appliances with relatively low margins, this sector will exceed the market expectation." predicted the securities firm.
The securities firm forecasted, "Operating profit in the duty-free sector is expected to be 18.4 billion won, due to an improvement in depreciation costs due to a reduction in rent at duty-free shops at Incheon International Airport and the recognition of impairment losses on licensed assets."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
