[Special Stock] Shinsegae Rises 3% on H2 Stock Price Growth Outlook

[Asia Economy Reporter Minji Lee] Shinsegae is showing a rise of over 3% during trading hours.

At 9:32 AM on the 11th, Shinsegae was trading at 227,500 KRW, up 3.41% from the previous trading day. The company's stock price surged to 229,000 KRW during the session. Despite concerns about economic slowdown and consumer recession, the solid performance in the second quarter is attracting investor sentiment.

On the previous day, Shinsegae announced that its consolidated sales for the second quarter increased by 34.5% year-on-year to 1.88 trillion KRW, and operating profit rose by 94.7% to 187.4 billion KRW. The operating profit exceeded market expectations by about 41%. This was due to the reopening effect, with all businesses except Shinsegae Casa showing steady growth.

In the securities industry, it is expected that the stock price recovery will be driven by improved performance in the duty-free sector in the second half of the year. Attention was also drawn to the fact that the stock price recovery was limited due to excessive peak-out concerns regarding the department store sector. Kim Myungjoo, a researcher at Korea Investment & Securities, explained, “Concerns about the peak-out of department stores have already been sufficiently reflected in the stock price, so the stock price recovery will occur with improved performance in the duty-free sector in the second half. The easing of lockdowns and quarantine measures in China compared to the second half of last year and the first quarter is a positive factor.”