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Photo = Yonhap news |
[Alpha Biz= Paul Lee] On May 21, Hana Securities maintained its 'Buy' rating on Hyundai Department Store, raising the target price to ₩85,000, citing strong earnings momentum expected from Q2 onward and share buybacks supporting the stock price.
Analyst Seo Hyun-jung stated, “Hyundai Department Store’s earnings momentum is set to strengthen in the second half, led by a recovery in its core department store business and improved profitability at its duty-free segment and Zinus (its mattress subsidiary).”
Although department store sales are estimated to have declined by 4% in April, Seo explained that the pace of decline is easing in May and that low base effects will support a recovery in the second half.
The company recorded ₩112.5 billion in operating profit in Q1, slightly beating market expectations.
Hana also highlighted Hyundai Department Store’s proactive shareholder return policy as a positive driver. The company announced an additional share buyback alongside its Q1 earnings release. Seo added, “Proceeds from a planned sale of its home shopping business stake will likely be used to further acquire treasury shares. Hyundai Department Store is targeting over ₩10 billion in interim dividends this year, ₩50 billion in total dividends by 2027, and aims to raise ROE above 6%—demonstrating a clear commitment to shareholder returns.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
