[Click eStock] "Emart, Positive Operating Profit of 1 Trillion Won by 2027"

Target Price Raised from 83,000 KRW to 95,000 KRW

On the 24th, IBK Investment & Securities upgraded the target price of Emart from 83,000 KRW to 95,000 KRW, viewing the company's plan to achieve an operating profit of 1 trillion KRW by 2027 positively. The investment opinion was maintained as 'Buy.'

Nam Seong-hyun, a researcher at IBK Investment & Securities, said, "It is difficult to clearly judge Emart's plan to achieve an operating profit of 1 trillion KRW, but there is sufficient basis for performance improvement," and forecasted that the operating profit in 2027 will increase to between 660 billion and 760 billion KRW, even if it falls slightly short of 1 trillion KRW.

Specifically, Researcher Nam pointed to factors improving performance such as the transition to the equity method in operating profit (67.4 billion KRW) after the launch of the Gmarket joint venture in the second half of 2025, the effect of integrated purchasing (about 100 billion to 200 billion KRW), mitigation of operating losses (about 140 billion KRW) due to projects carried out within the Shinsegae Construction Group in 2027, the effect of changes in property accounting standards (about 60 billion KRW), profitability improvement from the transition of SSG.com logistics to 3PL (about 70 billion KRW), and labor cost improvement effects (about 60 billion KRW).

This year's performance improvement of SSG.com is also noteworthy. Researcher Nam explained, "The performance improvement of the SSG.com division is expected to be rapid," adding, "Logistics supply through CJ Logistics is being fully activated, and the areas of Daegu, Busan, and Chungcheong are expanding." He continued, "The transition of the Neo Logistics Center to consignment logistics is expected to be completed in the second half of the year," adding, "This is why we expect a sharp increase in profit growth in the second half."