[Click eStock] "Emart, Ongoing Burden from Shinsegae Construction"

Shinsegae Construction Expected to Widen Losses in Q4

NH Investment & Securities forecasted on the 11th that Emart's fourth-quarter performance will fall short of market consensus due to the burden from 'Shinsegae Construction.' However, they maintained a 'Buy' investment rating and a target price of 100,000 KRW.

Joo Young-hoon, a researcher at NH Investment & Securities, stated, "Emart's consolidated sales for the fourth quarter are expected to increase by 5% year-on-year to 7.8776 trillion KRW, and operating profit is projected to rise by 193% to 37.4 billion KRW."

The growth rate of existing discount stores was anticipated to be around 1%. Researcher Joo analyzed that Emart's sales performance would be somewhat weaker than expected. However, due to efforts to improve selling and administrative expense efficiency, operating profit is expected to remain at a level similar to the same period last year. In the case of specialty stores, growth is expected to continue centered on No Brand.

Researcher Joo identified 'Shinsegae Construction' as the biggest burden on consolidated performance. He predicted, "The deficit (operating loss of 55 billion KRW) will expand again in this fourth quarter."

He added, "SSG.COM is also expected to have increased costs to achieve market-average scale growth, so unlike the first half of the year, it likely recorded an operating loss exceeding 20 billion KRW per quarter."

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