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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] IBK Investment & Securities said Hyundai Department Store’s first-quarter earnings may lag peers but maintained its ‘Buy’ rating and target price of 130,000 won, citing improving momentum in the second half.
The brokerage estimates first-quarter consolidated revenue at 1.104 trillion won, up 5.1% year-on-year, while operating profit is projected to fall 10.8% to 100.4 billion won.
While the department store division is expected to sustain growth—supported by strong luxury demand, rising foreign customer spending, and a recovery in apparel sales—weak performance at subsidiary Zinus is likely to weigh on overall results.
Zinus is projected to post an operating loss due to base effects from anti-dumping tariff reversals, temporary costs from efficiency improvements, and sluggish industry conditions. However, the brokerage expects the weakness to ease in the second half as restructuring efforts conclude and cost burdens decline.
Additional upside is anticipated from the expansion of duty-free operations at Incheon International Airport, along with continued growth potential in the department store segment, which has relatively lower exposure to luxury goods compared to peers.
IBK Investment & Securities maintained a positive outlook, expecting improved earnings momentum in the latter half of the year driven by recovery in subsidiaries and stabilizing operations.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
