 |
(Photo = BGF retail) |
[Alpha Biz= Reporter Kim Minyoung] On the 16th, IBK Investment & Securities maintained its 'Buy' rating for BGF Retail but lowered the target price from 220,000 KRW to 160,000 KRW.
IBK Investment & Securities stated, "BGF Retail is expected to meet market expectations for the second quarter on a consolidated basis," predicting that "second-quarter sales will increase by 5.3% year-on-year to 2.2096 trillion KRW, and operating profit will rise by 12.2% to 78.2 billion KRW."
Furthermore, IBK Investment & Securities mentioned, "The growth in performance is likely to be limited in the second quarter," estimating that "due to the impact of unfavorable weather and reduced consumer spending, same-store growth is expected to remain at around 1%."
However, they added, "Despite the low same-store growth, sales of seasonal products such as beverages and ice cream are expected to be strong, and with the increased profit contribution from new stores, the profit margin is expected to improve," projecting that "operating profit will be similar to last year's level."
IBK Investment & Securities also noted, "BGF Retail has achieved stable growth through strategies to expand its value chain and solidify its market dominance," but pointed out that "the company has not provided guidelines for new business strategies beyond convenience stores."
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
