Hyundai Department Store shares surged more than 15% intraday Monday as buying picked up on expectations of improved earnings.
According to the Korea Exchange, the stock was trading at 113,500 won as of 1:53 p.m., up 15,000 won, or 15.23%, from the previous session. It rose more than 20% at one point to an intraday high of 120,100 won.
The rally was widely seen as reflecting forecasts for stronger results in the company’s core department store business.
Brokerages have also maintained a positive view. In a report dated April 22, Kyobo Securities said Hyundai Department Store is believed to have the largest number of Seoul stores among the three major department store operators with annual sales exceeding 1 trillion won. It added that in Gyeonggi Province, the Pangyo store is ranked No. 1 with sales that “overwhelmingly” outpace other locations.
“While the weakness at Zinus is disappointing, we believe margin improvement in the core department store business is progressing significantly,” Kyobo said, maintaining its “buy” rating and 130,000-won target price.
Kyobo also said it expects additional profitability gains this year as depreciation periods end at stores including The Hyundai Seoul, adding that earnings momentum remains intact on efficient cost execution and growth across all department store categories. It said there is also room for further improvement if Zinus recovers.
* This article has been translated by AI.
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