Will "Reopening Stocks" Take Off... Which Reopening Stocks Are Worth Watching?

[Asia Economy Reporter Kwon Jaehee] As the stock market continues to show a generally sluggish trend, there is an analysis that it is time to reassess reopening stocks, which have been relatively overlooked. The expectation that the introduction of oral COVID-19 treatments will reduce severe cases, along with the normalization of COVID-19 leading to lowered public expectations for reopening, could ironically present an opportunity for investors.

On the 30th, Samsung Securities upgraded its investment opinion on Korean Air, one of the representative reopening stocks, to "buy." The target price was also maintained at 36,000 KRW.

Despite the aviation industry's downturn due to COVID-19, Korean Air achieved its highest-ever operating profit last year. Korean Air's operating profit last year (based on separate financial statements) was 1.4644 trillion KRW, a 515% increase compared to the same period the previous year (238.3 billion KRW). This significantly surpassed the previous annual record operating profit of 1.1589 trillion KRW in 2010. Revenue increased by 18% year-on-year to 8.7534 trillion KRW.

Samsung Securities analyst Kim Youngho stated, "Due to the continued congestion in the global logistics network, strong freight rates are expected to continue at least through the first half of the year, supporting strength in the cargo segment," and added, "Expectations for enhanced competitiveness on long-haul routes following the acquisition of Asiana Airlines remain valid."

Besides Korean Air, Hyundai Department Store is highlighted as a noteworthy reopening stock. It is anticipated that short-term overseas travel demand will be difficult to normalize, leading consumer demand to concentrate in the fashion and luxury goods sectors.

According to the securities industry, Hyundai Department Store's sales forecast for last year is 3.515 trillion KRW, expected to increase by 35% compared to the previous year. Operating profit is also estimated to rise by 95% to 264.7 billion KRW.

Mirae Asset Securities maintained a "buy" rating on Hyundai Department Store with a target price of 115,000 KRW based on this background.

Mirae Asset Securities analyst Kyung Minjung evaluated, "Hyundai Department Store, which has strengths in fashion, is considered a particularly beneficiary industry," and added, "Growth centered on fashion, which has higher margins than luxury goods, is also positive for profitability."

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