[Asia Economy Reporter Park Jihwan] Mirae Asset Daewoo on the 17th raised its investment opinion to 'Buy' and increased the target price for Lotte Hi-Mart from the previous 35,000 KRW to 40,000 KRW, citing expected favorable demand for home appliances.
Kim Myungjoo, a researcher at Mirae Asset Daewoo, stated, "Lotte Hi-Mart is expected to record an operating profit of 50.1 billion KRW in the third quarter, a 50% increase compared to the previous year," adding, "both sales and operating profit are expected to be favorable due to solid growth centered on large home appliances and efficient cost management."
Researcher Kim predicted, "Similar to the second quarter, the air conditioner segment likely underperformed in the third quarter due to cooler weather, but most home appliance demand excluding air conditioners was favorable due to a significant increase in housing move-ins in the second half and the continued Stay at home trend."
He emphasized, "Even after the end of COVID-19, the Stay at home trend will continue for the time being due to factors such as increased remote work and the spread of home leisure, which are drivers of home appliance purchase demand," adding, "This is a factor that leads to new home appliance purchases regardless of moving or housing occupancy."
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