Emart, Full-Scale Growth of SSG.com Expected in the Second Half of the Year

[Asia Economy Reporter Park Jihwan] Kyobo Securities evaluated on the 13th that SSG.com’s growth is expected in the second half of the year for Emart. Accordingly, they maintained a 'Buy' investment rating and a target price of 220,000 KRW.

Researcher Jeong Soyeon of Kyobo Securities stated, "SSG.com's total transaction amount (GMV) as of last year increased by 39% compared to the previous year to 3.9 trillion KRW, with food accounting for 47%," adding, "The transaction amount from January to May this year grew by 14% year-on-year, which is slower than expected, but growth in the second half is anticipated."

Researcher Jeong explained, "In the second half, SSG.com plans to introduce services through a strategic partnership with Naver," and estimated, "This will likely take the form of Naver Shopping entry and the combination of Naver Pay with Shinsegae points." Jeong also analyzed, "If Emart acquires eBay Korea, a business strategy considering new businesses and partnerships with Naver must accompany it," and "If eBay Korea is acquired, Emart’s online GMV will expand from 3.9 trillion KRW to 24 trillion KRW."

He assessed, "The uncertainty over the acquisition of eBay Korea that has continued since the beginning of the year was likely a discount factor for Emart," and added, "The uncertainty will be resolved with the announcement of the preferred negotiation partner next week, but it will be necessary to analyze the acquiring party and business direction thereafter."

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