[Click eStock] "Hyundai Department Store, Duty-Free Shop Competitiveness Expected to Improve in Q1"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 115,000 Won... Closing Price on 6th at 81,200 Won

Hyundai Department Store (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Bo-ryeong] There is a forecast that Hyundai Department Store's duty-free shop competitiveness will improve within the first quarter of this year.

According to Daishin Securities on the 7th, Hyundai Department Store's sales and operating profit in the fourth quarter of last year recorded 1.8184 trillion KRW and 105.6 billion KRW, respectively. These figures represent an 8% and 7% increase compared to the previous year. Although sales of winter products such as cold-weather clothing were sluggish due to warm weather, luxury goods sales performed well, and the Pangyo branch saw sales growth along with the expansion effects of the Cheonho and Gimpo branches. The duty-free shop's average daily sales rose to the 2 billion KRW range.

In the first quarter, it is analyzed that the competitiveness of the duty-free shops will improve starting with the opening of the newly launched Dongdaemun duty-free shop this year. Yu Jeong-hyun, a researcher at Daishin Securities, said, "A paid-in capital increase of 200 billion KRW was made to Hyundai Department Store Duty-Free, a subsidiary, to fund the operation of the Dongdaemun duty-free shop. Even if the Dongdaemun branch begins operations in the first quarter amid the novel coronavirus infection (Wuhan pneumonia), initial performance is likely to be somewhat sluggish," adding, "However, by acquiring the Dongdaemun branch and operating two duty-free business sites, it is judged that an opportunity has been created to more firmly establish the foundation of the duty-free business. It is necessary to focus on strengthening competitiveness after the virus subsides rather than on initial sluggish performance."

Daishin Securities gave Hyundai Department Store a 'Buy' investment opinion with a target price of 115,000 KRW. The closing price on the 6th was 81,200 KRW.

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