"Stock Market Rally and Asset Effect"… Reasons for Raising Hyundai Department Store Target Price [Click eStock]

On June 11, Kiwoom Securities raised its target price for Hyundai Department Store from 1,470,000 won to 2,200,000 won, citing strengthening sales growth. The investment opinion remains at 'Buy.'

Park Sangjoon, an analyst at Kiwoom Securities, stated in a report released on the same day, "Reflecting the strengthening sales growth centered on The Hyundai Seoul (Yeouido) and the Pangyo branch, we have raised our projection for the second quarter same-store sales growth rate for department stores." He added, "We are also raising our annual operating profit forecast for this year to 431.3 billion won."

In the medium term, it is expected that the current robust department store sales will continue. This is because, as major domestic companies continue to show strong earnings and the stock index maintains an upward trend, incentive payments and wage increases at major companies based on this year’s strong performance could have a significant impact early next year.

Park further explained, "Due to the weak won and the impact of eased travel restrictions between Korea and Japan, the number of foreign tourists, particularly those from China, has increased significantly. As a result, the proportion of sales from foreign customers is expected to rise structurally." He also noted, "It is positive that the duty-free business is establishing a foundation for mid- to long-term growth with the opening of the DF2 zone at Incheon Airport, and Zinus is expected to show improved performance compared to the previous quarter thanks to the effect of Amazon Prime Day."

This content was produced with the assistance of AI translation services.