[Click eStock] "Emart Expected to Return to Operating Profit in Q4"

On November 13, IBK Investment & Securities projected that Emart would continue to see earnings growth in 2026, driven by the restructuring of the discount store market, improved profitability, and increased operating performance of its major subsidiaries. The brokerage maintained its "Buy" investment rating and set the target price at 104,000 won.

For the third quarter, Emart reported consolidated sales of 7.4008 trillion won (down 1.4% year-on-year) and operating profit of 151.4 billion won (up 35.5% year-on-year).

Nam Sung-hyun, a researcher at IBK Investment & Securities, stated, "Although market conditions in the third quarter were somewhat sluggish, the main business units outperformed expectations, leading to positive results." He cited the following as key factors behind the strong performance: profitability was protected through integrated purchasing despite a decline in same-store sales growth; selling, general, and administrative expense reductions; increased contribution from the accounting standard change at Shinsegae Property; and improved performance of consolidated subsidiaries such as Shinsegae Food, Josun Hotels, and Shinsegae Construction.

An operating profit surplus is also expected in the fourth quarter. Nam noted, "The effect of reduced fixed costs, which has continued since last year, is likely to persist, and the same-store sales growth rate at discount stores is turning to a recovery in the fourth quarter." He also pointed out that the impact of Gmarket's deconsolidation and increased contribution from Josun Hotels are anticipated. For the fourth quarter of this year, he forecast sales of 7.6108 trillion won (up 5.0% year-on-year) and operating profit of 34.9 billion won (returning to profit).

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