[Click e-Stock] "Shinsegae, Target Price Raised to 450,000 Won... Department Store Showing Strong Growth"

On the 10th, Kiwoom Securities raised its target price for Shinsegae to 450,000 won, reflecting the growth trend of its department store business, while maintaining its investment rating of "Buy."

Park Sangjoon, an analyst at Kiwoom Securities, stated in a report that "thanks to the renewal of large stores, Shinsegae is showing the strongest growth among department store operators, while the growth of high-margin fashion product categories is expanding," adding, "In particular, after the Lunar New Year season, there is a high possibility that the increase in foreign tourists, mainly Chinese visitors, will strengthen, which could lead to a further upward revision of the company-wide earnings forecasts."

Shinsegae's consolidated operating profit in the fourth quarter of last year was 172.5 billion won, meeting the heightened market expectations. Key drivers included same-store sales growth at department stores, the turnaround to profit in the duty-free business driven by lower discount rates and higher airport store sales, and improved results at Central City backed by strong sales at the hotel business and the Gangnam branch of the department store.

The consolidated operating profit for the first quarter of this year is projected to be 144.9 billion won. Supported by strong earnings at major domestic companies and a bullish stock market, sales of luxury goods and fashion at department stores are robust. The momentum from improving results at major subsidiaries and the strengthening of shareholder return policies are also expected to have a positive impact on the share price trend.

Kim Hyemi, an analyst at SangSangin Securities, said, "The growth trend of the department store business is expected to continue through the second half of the year, while efficiency is likely to accelerate as a result of restructuring in the duty-free segment," adding, "We also expect the earnings improvement trend to continue at subsidiaries that operate group-affiliated businesses such as fashion, beauty, and hotels."

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