[Click eStock] "GS Retail, Convenience Store Turnaround in Full Swing Since February"
Yuanta Securities
[Asia Economy Reporter Song Hwajeong] Yuanta Securities maintained a 'Buy' investment rating and a target price of 50,000 KRW for GS Retail on the 9th, despite the company's weak performance in the fourth quarter of last year, anticipating a full-scale turnaround in convenience store performance starting February.
GS Retail recorded sales of 2.1609 trillion KRW and an operating profit of 25.7 billion KRW in the fourth quarter of last year. These figures represent decreases of 3.6% and 48.5%, respectively, compared to the same period the previous year. Researcher Lee Jin-hyeop of Yuanta Securities analyzed, "The operating profit fell significantly short of the consensus (35 billion KRW)," adding, "All business divisions showed uniformly poor performance." The convenience store segment posted sales of 1.7272 trillion KRW, up 0.2%, but operating profit fell 29.4% to 37.4 billion KRW. This was due to a high base effect from one-time gains related to lease accounting in the previous year and a deterioration in same-store sales growth. The same-store sales growth rate in the fourth quarter was around -3%, affected by the sluggish school district market due to COVID-19. The supermarket division recorded sales of 284.7 billion KRW, down 12.5%, and an operating loss of 9.4 billion KRW, while the hotel division posted an operating loss of 3.4 billion KRW as it failed to benefit from peak season effects in food and banquet services due to the impact of COVID-19.
Hot Picks Today
!["It Has Now Crossed Borders": No Vaccine or Treatment as Bundibugyo Ebola Variant Spreads [Reading Science]](https://cwcontent.asiae.co.kr/asiaresize/93/2026052019230771274_1779272587.jpg)
"It Has Now Crossed Borders": No Vaccine or Treatment as Bundibugyo Ebola Variant Spreads [Reading Science]
- "Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
- "Am I Really in the Top 30%?" and "Worried About My Girlfriend in the Bottom 70%"... Buzz Over High Oil Price Relief Fund
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
Performance is expected to gradually improve from February onward. Researcher Lee explained, "Since the convenience store downturn began at the end of February last year, a base effect could lead to a full-scale rebound in same-store sales growth," adding, "As the government is reportedly considering a return to normal school attendance, the magnitude of the rebound could be even stronger."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
