Hankuk Securities announced on June 23 that it has raised its target price for Shinsegae to 930,000 won, citing expectations for improved operating conditions and enhanced profitability due to a recovery in consumer spending. The firm maintained its investment rating at "buy."
In a report released that day, analyst Park Jong-ryul stated, "The rapid rise in the stock market since April of last year, along with rising real estate prices centered in Seoul, is expected to lead to a recovery in consumption, particularly among affluent consumers."
Park noted that Shinsegae's department stores, particularly the Gangnam and main locations, are likely to continue performing well due to strong sales of luxury goods and an increase in foreign customer spending. He also projected that the duty-free shops would adopt a profitability-focused operational strategy, enhancing competitiveness for individual tourists and improving foreign customer attraction at city stores, especially following the withdrawal from Incheon Airport's DF2.
Additionally, Park indicated that Shinsegae International could see profitability improvements through a focus on beauty and fashion capabilities as consumer spending recovers. He explained that the upward revision of earnings forecasts for 2026-2027 and adjustments in multiples led to the increase in the target price.
The company's shareholder return policy was also viewed positively. Park stated, "The ongoing reevaluation of the stock price through expanded shareholder returns is expected to continue. After completing the buyback of 2.0% and 2.1% of shares in 2025 and 2026, respectively, 7.2% will remain. The remaining shares are also planned to be gradually retired."
* This article has been translated by AI.
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