[Featured Stock] Hyundai Department Store Jumps 6% on Strong Affiliate Outlook and Incheon Airport Duty-Free Hopes

Shares of Hyundai Department Store jumped on the back of strong earnings expectations in the securities market for its group affiliate Hansae and its selection as the new duty-free operator at Incheon Airport.

As of 9:11 a.m. on February 10, Hyundai Department Store was trading at 107,000 won, up 6,500 won (6.47%) from the previous trading day.

First, the fashion affiliate Hansae is showing strength in early trading as last year's results exceeded market expectations. Hansae announced that in the fourth quarter of last year, it posted sales of 463.7 billion won and operating profit of 27.2 billion won. This represents increases of 6.4% and 30.1%, respectively, compared with the same period a year earlier, and exceeds the consensus by 3% in sales and 11% in operating profit. As of 9:12 a.m., Hansae was trading at 20,500 won, up 2,250 won (12.33%) from the previous trading day.

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The company also benefited from being selected as the qualified operator for the Incheon Airport DF2 concession. Lee Jinhyup, a researcher at Hanwha Investment & Securities, said, "Based on 2025, the annual sales of the DF2 zone are estimated to be around 500 billion won, and assuming a contribution margin of 36%, we expect the company to post an annual operating loss of around 8 billion won from operating DF2." He added, "If the duty-free price advantage in categories such as perfume, cosmetics, liquor, and tobacco expands due to factors such as exchange-rate stabilization, we expect the company will be able to achieve results at or above breakeven through efficiency improvements driven by higher sales per customer."

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