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| GS25 컨테이너형 무인편의점 (사진 = GS리테일 홈페이지) |
[Alpha Biz=(Chicago) Reporter Paul Lee] Samsung Securities said on the 19th that GS Retail is delayed in recovering its competitiveness of convenience stores, and said it will lower its target price to 29,000 won from the previous 38,000 won while maintaining its "buy" investment opinion. The closing price of the previous day is 21,600 won.
Samsung Securities estimated GS Retail's sales in the second quarter at 2.93 trillion won, up 4 percent from a year earlier, and operating profit at 83.5 billion won, up 67 percent.
"While the reduction of the deficit in new businesses, including e-commerce, has contributed the most to the improvement in performance, supermarket and hotel performance has also improved," Samsung Securities said. "However, the convenience store performance, which is most important for the company's corporate value, is regrettable."
Sales in the convenience store sector are expected to rise 7 percent on-year to 2.8 trillion won in the second quarter and operating profit to 63.1 billion won, down 6 percent. Researcher Park said, "The 5% net increase in the number of stores compared to the previous year was planned, but the growth rate of existing stores, which is less than 2% and differs from competitors, is regrettable."
Considering the slow growth of existing convenience stores, the company also revised its annual operating profit estimate down 7% from the previous year. It is expected to reach 329.6 billion won, up 34% from the previous year.
"There is a need to wait and see how much food price stability will affect the company's growth momentum in the future in the face of the possibility of downward stabilization of food prices, such as the recent cut in ramen prices.
However, despite the conservative approach to business value, the valuation of the current stock price, which is traded at a 15% discount compared to the same companies, seems to be high, so we maintain our opinion on purchase investment," Samsung Securities said.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
