[Click eStock] "GS Retail, a Safe Investment Alternative in the Distribution Sector... Target Price Maintained"

DB Financial Investment evaluated GS Retail on the 29th as a safe investment alternative within the distribution sector. They maintained a 'Buy' rating and a target price of 28,000 KRW.

Heo Jena, a researcher at DB Financial Investment, said about the convenience store segment, "From last month to this month, convenience store openings centered on headquarters-leased stores have continued, increasing cost burdens, but the base will decrease as we move into the second half of the year," adding, "If same-store sales rebound next month, which includes the Chuseok holiday, earnings growth compared to the previous year can be expected."

As of the end of August, GS Retail has maintained a favorable opening pace by expanding supermarkets to 500 stores. Researcher Heo noted, "Supermarkets still show good sales contributions from new stores," and "In the third quarter, an environment is expected where sales growth and profitability improvement can occur simultaneously."

In particular, it is explained that GS Retail can be a safe investment alternative within the distribution sector. Researcher Heo stated, "Despite sluggish domestic demand, the fundamentals of the franchise-based supermarket division stand out for improvement," and "The price-to-earnings ratio (PER) in 2025 is still undervalued at 12 times." He also forecasted, "The point that will add momentum to the stock price rise will be when the convenience store division turns to earnings growth in the second half."

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