[Click eStock] "Emart 1Q Earnings Slump, Stock Adjustment Buying Opportunity"

Hanwha Investment & Securities stated in a report on the 27th, "Emart's first-quarter earnings are expected to temporarily decline due to last year's base effect, but the second-quarter earnings forecast can rather be expected to be revised upward," adding, "The stock price adjustment caused by the first-quarter earnings slump can instead be used as a buying opportunity."

Hanwha Investment & Securities explained, "Emart is expected to record an operating profit of 64.2 billion KRW in the first quarter, falling short of the market forecast of 91.9 billion KRW," and "The main reason for the expected earnings decline is the poor performance of discount stores in January and February."

The poor performance of discount stores in January and February, which was temporary, is estimated to have started recovering from March. The profitability improvement effect due to Starbucks' cost stabilization is also expected to become full-fledged from the second quarter.

Hanwha Investment & Securities maintained a 'Buy' investment rating and a target price of 150,000 KRW for Emart. The firm also maintained its status as the top preferred stock in the retail sector. Hanwha Investment & Securities mentioned, "Following last year, the competitive easing environment continues this year, and in addition, this year, the negotiation power with discount store manufacturers with smooth cash flow can also improve."

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