Hyundai Motor Securities raised its investment opinion on Shinsegae to 'buy' and raised its target price to 460,000 won.
Hyundai Motor Securities pointed out on the 13th that Shinsegae's first-quarter operating performance far exceeded its original forecast due to a sharp increase in department stores and the recovery of even performance by its consolidated subsidiaries.
According to Hyundai Motor Securities, Shinsegae's total sales in the first quarter were 2.1754 trillion won and operating profit was 123.6 billion won, far exceeding its initial forecast. This is because the department store recorded operating profit far above its initial forecast, while its consolidated subsidiaries also recorded even results.
Shinsegae's duty-free business also shifted to a surplus due to cost-cutting effects, including a reduction in rent at airport stores, while the performance of most of its consolidated subsidiaries, including Shinsegae International, Central City and Daegu Shinsegae, improved significantly, Hyundai Motor Securities explained.
Hyundai Motor Securities expects the company's operating performance momentum to continue to be good after the second quarter in line with the recovery of the consumer economy following the gradual resolution of the COVID-19.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
