[Click eStock] "Emart, Gradual Improvement Expected in Mart Division Margin Rate After Q2"

[Asia Economy Reporter Eunmo Koo] Shinhan Financial Investment stated that Emart's margin rate in the mart sector is expected to gradually improve after the second quarter of this year, and emphasized the need to focus on the mart's bottom compared to last year's fourth quarter performance, online growth trends, and improvement in specialty store deficits. The investment opinion and target stock price were maintained at 'Buy' and 165,000 KRW, respectively.

According to Shinhan Financial Investment on the 3rd, Emart's consolidated operating profit for the fourth quarter of last year is expected to decrease by 44.4% year-on-year to 34.1 billion KRW. Researcher Heejin Park of Shinhan Financial Investment explained in the report, "The profit margin of the mart sector is expected to be around 2.3%, down about 0.5 percentage points compared to the same period last year, and the online sector's operating loss is expected to increase by about 2 billion KRW from the previous quarter to 25.7 billion KRW," adding, "This is due to the costs of the 'SSG Day' event and depreciation expenses from the opening of the third logistics center."

The mart sector's margin rate is expected to gradually improve after the second quarter of this year. Researcher Park analyzed, "Despite the underperformance of existing store trends in December last year compared to expectations, there is no concern about the direction of gradual improvement," and "Considering the difference in the number of days, the actual growth rate only slightly declined." He continued, "In the case of the online sector, although the deficit expanded due to SSG Square advertising in the third quarter and the impact of SSG Day in the fourth quarter, it is possible to manage a quarterly deficit of around 15 to 20 billion KRW when costs are executed at the planned level." The annual online sector deficit this year is expected to improve by about 6 billion KRW to 64.9 billion KRW compared to 71.3 billion KRW last year.

This content was produced with the assistance of AI translation services.