"Both Convenience Stores and Supermarkets Are Performing Well"... GS Retail Projected for Strong Q3 Results [Click e-Stock]

Daishin Securities maintained its target price of 33,000 won and its 'Buy' rating on GS Retail on September 15, citing strong third-quarter results expected from its convenience store and supermarket divisions.

Yoo Junghyun, a researcher at Daishin Securities, wrote in a report released on this day, "The convenience store division confirmed robust industry conditions in the third quarter, maintaining sales growth despite the high base effect from last year's consumer coupon program," adding, "With the base effect from September onward fading, store sales growth and margin improvement are expected to accelerate further."

Same-store sales growth for convenience stores in the third quarter is estimated to be around 2%. Yoo explained, "Substantial increases in high-margin beverage sales due to higher foreign customer sales and a recovery in consumer demand are expected to improve gross profit margins, as well as create operating leverage through cost efficiency. If the proportion of foreign customer sales, currently in the 3% range, soon exceeds 4–5%, a revaluation of the stock price is possible."

The growth trajectory of the supermarket division is even steeper. Yoo stated, "The supermarket segment is seeing improved traffic indicators thanks to a boost from Homeplus's declining performance and increasing quick commerce sales," and projected, "It will achieve double-digit revenue growth."

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