Hana Financial Investment launched coverage on the 6th, offering its investment opinion on Shinsegae International as a "Buy" and the target price of 250,000 won, respectively.
The investment predicts that Shinsegae International will drive earnings improvement as sales in overseas fashion sectors increase. It is necessary to pay attention to the possibility of earnings turnaround based on brand MD (product development) capabilities.
Shinsegae International is an affiliate of Shinsegae Group, securing its high brand sourcing ability and Shinsegae Group's captive distribution network as its core competitiveness. In particular, a strong performance turnaround is expected this year. Sales of department stores, a major sales channel, are rebounding rapidly due to consumption recovery, and clothing consumption is also on a steep recovery.
Due to stable sales growth in overseas fashion brand sectors and an earnings recovery in the domestic clothing and cosmetics sectors, sales are expected to increase by an annual average of 7% and operating profit 29% over the next two years.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
