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[Alpha Biz=(Chicago) Reporter Paul Lee] Shinhan Investment & Securities said, "We should pay attention to the recovery of tax exemption and valuation appeal rather than the base burden." Investment opinion was 'buy' and target price was 'down' to 220,000 won.
"Corporate value has been falling due to department store peak-out concerns over the past two years, but it is expected to rebound due to some store renewal effects and VIP customers from 2024," Shinhan Investment & Securities Co. said in a report on the 18th. Lower earnings estimates and target prices took into account sluggish sales and prolonged cost growth.
Shinhan Investment & Securities expects Shinsegae's fourth-quarter earnings to fall 23.1 percent on-year to 1.7 trillion won in sales and 168 billion won in operating profit, up 18.8 percent.
Despite its high base, the growth rate of existing stores is expected to be good at around 8%. However, it is predicted that operating profit will decrease by 8% as various costs such as labor costs, utility costs, and promotion costs will increase. International is expected to see its operating profit drop 43 percent due to the influence of its finished brand. DFF's operating profit is expected to fall 17% QoQ due to a drop in the portion of FITs with good profitability and a fixed cost burden stemming from an increase in the airport branch's operating area.
Shinhan Investment & Securities judged that the entry of Chinese group tourists will gradually recover from the second quarter of this year.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
