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[Apha Biz=(Chicago) Reporter Paul Lee] E-Mart's stock price continued to weaken, falling to its lowest price since its listing. It is a stock price level that is less than 0.2 times the asset value.
On the KOSPI market on the 12th, E-Mart closed at 71,600 won, up 1,500 won (2.14%) from the previous day. The stock price is down 26.9% this year. On the 4th, it recorded 68,500 won during the day.
Currently, about 20 stocks have fallen to the point where the PBR is less than 0.2 times in the stock market, mainly in construction and holding companies. In the retail sector, E-Mart (0.18) and Lotte Hi-Mart (0.17) are less than 0.2 times. The PBR (net asset ratio) is an indicator of the value of stock prices and net assets per share, indicating how many times the current corporate value is compared to the book price. If the PBR is 1x, it means that the book value (the sum of capital, capital surplus, retained earnings, etc.) is the same as the asset value.
E-Mart's performance in both the first and second quarters was below expectations. Operating profit in the first quarter fell 60% year-on-year to 13.7 billion won, recording an earning shock and an operating loss of 53 billion won in the second quarter. Sales of discount stores (E-Mart) and Traders were sluggish, and Shinsegae Engineering & Construction posted a large operating loss in the second quarter due to rising cost rates. Starbucks also continued to benefit from the cost burden.
While stock prices continued to fall due to sluggish earnings, Shinsegae Group conducted a regular executive reshuffle a month earlier than usual on the 20th of last month to replace E-Mart's CEO.
Kang Hee-seok, CEO of E-Mart and SSG.com., who was in charge of E-Mart's online and offline businesses, will leave the company with about two and a half years left in his term. Han Chae-yang, CEO of Chosun Hotel & Resort, was appointed as the new CEO of E-Mart. In particular, Han will be in charge of all offline distribution businesses such as E-Mart, E-Mart Everyday, and E-Mart 24.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
