[Special Stock] GS Retail, Q3 Earnings Exceed Expectations... Intraday Rise Over 4%

[Asia Economy Reporter Minji Lee] GS Retail is showing an intraday rise of over 4%.

At 9:42 AM on the 9th, GS Retail was trading at 28,700 KRW, up 4.36% from the previous trading day. This increase in investor sentiment followed the announcement of third-quarter earnings that exceeded market expectations.

GS Retail reported consolidated third-quarter sales of 2.956 trillion KRW and an operating profit of 87.6 billion KRW. Although operating profit decreased by 16% compared to the previous year, it significantly surpassed market estimates of 76 billion KRW. Nam Seonghyun, a researcher at IBK Investment & Securities, analyzed, “In the convenience store segment, same-store sales growth reached 3.5%, and with over 200 new store openings, stable growth was observed. Improvements in hotel performance and Fresh Mall’s profitability were also positive factors.”

The hotel business division posted an operating profit of 23 billion KRW in the third quarter, improving by 15 billion KRW from the previous quarter due to simultaneous increases in occupancy rates and ADR (Average Daily Rate). Starting from the third quarter, the addition of Jeju Parnas Hotel operations is expected to contribute significantly to profit growth next year. Fresh Mall achieved a profit of 53.6 billion KRW, improving by approximately 8 billion KRW compared to the previous quarter. Researcher Nam stated, “Although the deficit is still a concern, the strong commitment to improving profitability and the rapid reduction in losses are expected to be key drivers of earnings growth next year.”