 |
GS25 container type unmanned convenience store (photo = GS Retail homepage) |
[Alpha Biz= Reporter Paul Lee] KB Securities lowered GS Retail's consolidated operating profit estimates and target stock prices this year, citing a slowdown in convenience store business.
KB Securities released a report on November 11 and lowered GS Retail's consolidated operating profit estimate to 410.2 billion won, down 9% from the previous 450.6 billion won. The target stock price was also offered at 29,000 won, down 12% from the previous one.
KB Securities pointed out that GS Retail's operating profit estimates and target stock prices for this year were lower than expected. Researcher Park predicted that GS Retail will make 234.7 billion won in operating profit this year in the convenience store sector, down 22.5 billion won from the previous estimate. He also lowered the annual growth rate of existing convenience stores from 1.5% to 0.8% this year.
"GS Retail's overall operating profit on a consolidated basis in the first quarter of this year is expected to reach 67.4 billion won, 7% less than originally expected," KB Securities said. "The sales of convenience stores will increase by only 0.5%."
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
