[Special Stock] GS Retail Plummets on First Trading Day After Split Resumption

GS Retail experienced a sharp decline of over 14% on the first day of trading after its spin-off.

As of 9:12 a.m. on the 23rd, the stock is trading at 16,840 won, down 2,960 won (14.95%) from the reference price of 19,800 won.

GS Retail's trading had been suspended for a month due to the spin-off and resumed on this day. On June 3rd, GS Retail decided to spin off into GS Retail (distribution business division) and GS P&L (hotel business). Seo Hyun-jung, a researcher at Hana Securities, stated, "The appropriate market capitalization of GS Retail upon re-listing after the spin-off is estimated at 2.251 trillion won, with a price-to-earnings ratio (PER) of 12 times based on 2025 projections, and the reasonable target stock price is estimated at 27,000 won." She explained, "A 12x PER was applied, which is a 30% premium compared to the average PER of the distribution industry, due to the expected stable sales growth based on its strong market dominance in the convenience store sector." She added, "The upside potential is not significant compared to the pre-spin-off reference price of 23,000 won."

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