[Click eStock] "Shinsegae, High Possibility of Growth Rate Rebound from 4Q"

On the 8th, SK Securities issued a buy rating and a target price of 360,000 KRW for Shinsegae, stating that performance improvement is expected to appear in the second half of this year.

Shinsegae's consolidated sales for this year are expected to reach 7.86 trillion KRW, with operating profit of 673.1 billion KRW, both showing slight growth compared to the previous year.

Last year, the revenge consumption effect created a significantly high base for both department store sales and operating profit. It is analyzed that in the fourth quarter of this year, Shinsegae will escape from this high base effect. Shinsegae DF is estimated to experience negative growth in the first half compared to the previous year due to adjustments in the commission fees for Daigong brokerage. Operating profit in the first quarter is expected to rebound compared to the previous quarter due to the refund of airport duty-free license fees, and profit margin improvement is expected to be confirmed from the second half of the year.

Shinsegae Inter is expected to experience negative growth due to the high base effect from last year, and Casamia is anticipated to continue operating losses due to the slowdown in the real estate market. Central City is projected to continue growth this year as mask-wearing restrictions are lifted.

Park Chansol, a researcher at SK Securities, explained, "Shinsegae is a department store operator that owns many domestic high-end luxury brand stores, and a duty-free shop operator with locations in Myeongdong, Busan, and Incheon Airport," adding, "It tends to grow along with the increase in domestic disposable income and trends in the high-end market."

He continued, "This year, it is judged to be difficult to record high growth rates due to the high base effect from last year," but added, "However, it is believed that the growth rate of major business segments will likely rebound starting from the fourth quarter."

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