Mirae Asset Securities announced on May 21 that it has raised its target price for Shinsegae International to 19,000 won, citing expected benefits from the expansion of luxury consumption. The firm maintained its investment recommendation of "buy."
Analyst Bae Seung-hoon stated in a report that the company’s main channel, department stores, has entered a phase of structural growth, and he anticipates that the company’s investment points will align with this trend.
Bae noted that the high-end fashion segment, which has a significant share in the company's business, saw a 35% increase in growth in the first quarter compared to the same period last year, while imported cosmetics grew by 20%. He highlighted that these categories are contributing significantly to overall sales, with overseas fashion accounting for 37% and imported cosmetics for 30% of total revenue, suggesting even higher contributions in terms of profit.
He added that the current economic environment is particularly favorable for luxury goods, and he expects continued performance improvements driven by this sector.
Furthermore, Bae projected a significant increase in foreign demand, noting that foreign purchases at department stores are primarily focused on luxury goods and fashion, which overlap substantially with the company's business areas. He anticipates that the trend of benefiting directly from inbound foreign customers will continue alongside department store growth.
* This article has been translated by AI.
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