[Click eStock] "Hyundai Department Store, Improving Profitability and Expanding Shareholder Returns... Target Price 65,000"

Yuanta Securities on the 3rd set the target price of Hyundai Department Store at 65,000 won, more than 40% higher than the current price. It is expected that corporate value will improve as business competitiveness is strengthened to enhance profitability, and an active shareholder return policy is pursued.

On the 1st, marking the start of the Christmas season in the distribution industry, the Christmas-themed village 'H Village' was set up at The Hyundai Seoul in Yeouido, Seoul, attracting a crowd of customers. Photo by Jo Yong-jun

Seung-eun Lee, a researcher at Yuanta Securities, said, "Hyundai Department Store will increase sales by newly opening Gwangju Hyundai and Busan Premium Outlets," adding, "Profits will also increase through sales expansion and strengthening the profitability of existing stores."

Lee forecasted, "In the duty-free business sector, profitability will be improved by strengthening the high-profit structure centered on airport stores and focusing on operating efficiency of downtown duty-free stores." He also explained, "The subsidiary, Zinus, will promote growth through global market expansion and channel diversification."

He stated, "Hyundai Department Store plans to cancel 3.3% of its treasury shares within the year and gradually raise the existing settlement dividend per share, conducting a semi-annual dividend of at least 10 billion won from next year," and added, "The company aims to expand the total annual dividend amount to around 50 billion won by 2027."