[Click e-Stock] "Lotte Shopping, Earnings Turnaround Begins"

[Asia Economy Reporter Park Jihwan] Hyundai Motor Securities maintained a 'Buy' rating and a target price of 122,000 KRW for Lotte Shopping on the 10th, stating that the earnings turnaround has begun.

Park Jongryeol, a researcher at Hyundai Motor Securities, evaluated that the third quarter sales this year reached 4.1059 trillion KRW and operating profit was 111 billion KRW, recording solid results that exceeded initial market expectations. By segment, the improvement in performance was notable across all divisions except for department stores and others (Culture Works).

In the fourth quarter as well, sales of 3.9871 trillion KRW and operating profit of 160.6 billion KRW are expected to sustain a favorable earnings momentum, following the third quarter, with continued improvement trends in discount stores, electronics retail, supermarkets, and home shopping.

Especially next year, the earnings turnaround is expected to become more full-fledged. Researcher Park Jongryeol stated, "Gradual improvement in earnings is possible in all business divisions that have experienced the worst phase, and the profitability of previously underperforming divisions can be significantly improved through the reduction of inefficient stores." He added, "Considering the future earnings turnaround, increasing exposure at the current stock price level is still valid."

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