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Chairman Jung Yong-jin of Shinsegae Group. Provided by Shinsegae |
[Alpha Biz= Kim Sangjin] Daishin Securities evaluated that Chairman Jung Yong-jin of Shinsegae Group's purchase of shares in E-Mart held by his mother, Chairwoman Lee Myung-hee, would have a positive short-term impact on the stock price. However, it predicted that the stock price's upward trend would be difficult to sustain in the long run.
In a report on the 13th, Daishin Securities explained that although the purchase plan of Chairman Jung would not have a substantial impact on the stock price, it confirmed his commitment to responsible management and would positively influence short-term investor sentiment.
On the 10th, Chairman Jung announced that he would acquire the entire 10.0% stake in E-Mart held by Chairwoman Lee through after-hours trading. He plans to buy 2.78 million shares at 76,800 won per share by March 11. This purchase is expected to cost around 214 billion won. According to the Korea Exchange, E-Mart's stock price was 64,800 won as of the 10th.
However, Daishin Securities noted that it is difficult to predict a rise in E-Mart's stock price from a long-term perspective. They cited the domestic economic downturn as a factor that makes an immediate rebound in earnings unlikely. According to researcher Yoon, E-Mart's operating profit in the fourth quarter of last year was 27.5 billion won, a 75% decrease from 112 billion won in the previous quarter.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
