[Click eStock] "Shinsegae Inter, Growth Expansion through Product Diversification and Duty-Free Entry"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 320,000 KRW... Closing Price on 15th at 260,000 KRW

Shinsegae International's cosmetics brand 'VDIVOV' (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Bo-ryeong] Expectations are rising that Shinsegae International's growth potential will expand due to product line expansion and entry into duty-free channels.

According to Daishin Securities on the 16th, Shinsegae International's estimated sales and operating profit for the fourth quarter of last year were 384.4 billion KRW and 25.1 billion KRW, respectively. These figures represent increases of 6% and 40% compared to the previous year.

Yoo Jung-hyun, a researcher at Daishin Securities, explained, "The strong performance of Shinsegae International's flagship cosmetics brand 'VDIVOV' and the robust sales of imported cosmetics such as high-margin perfumes led to significant growth in imported cosmetics sales, resulting in a substantial improvement in this segment's performance in the fourth quarter of last year."

This year, growth potential is expected to expand with product line extensions and new offline duty-free channel entries. The Yeonjak brand is scheduled to enter Lotte Duty Free Myeongdong Branch and Hotel Shilla Jangchung Branch in the first quarter of this year. Researcher Yoo said, "Sales of about 5 billion KRW were generated after entering two online duty-free shops in the fourth quarter of last year, and the effect of sales expansion is expected to be greater with the entry into offline stores." He added, "In addition, the domestic sales of overseas famous brand color cosmetics are scheduled for the first quarter of this year, so the growth potential of the cosmetics division is considered bright."

Daishin Securities has issued a 'Buy' investment opinion on Shinsegae International. The target stock price was raised by 23% from the previous level to 320,000 KRW. The closing price on the 15th was 260,000 KRW.

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