[Featured Stock] Emart Rises on Expectations of Benefits from Weakened Competitiveness of Homeplus

Emart is showing an upward trend following securities firms' analysis that it is expected to benefit from its competitor Homeplus's corporate rehabilitation filing.

As of 9:35 a.m. on the 5th, Emart is trading at 79,700 won, up 3,700 won (4.87%) from the previous day.

On the previous day, Homeplus filed for corporate rehabilitation procedures at the Seoul Bankruptcy Court. Homeplus stated that this was a preemptive response to potential funding issues due to a downgrade in its credit rating.

Researcher Jo Sang-hoon of Shinhan Investment Corp. said, "In the short term, Homeplus's damage is inevitable, and Emart and Lotte Shopping are expected to benefit," adding, "In particular, since the rehabilitation plan must be submitted to the court by June 3, asset securitization is expected to proceed quickly, and during this process, Emart and Lotte Shopping, competitors in the discount store sector, are expected to benefit."

Researcher Lee Jin-hyup of Hanwha Investment & Securities also analyzed, "The corporate rehabilitation filing will inevitably weaken Homeplus's operational competitiveness," and "Accordingly, the possibility of benefits for large mart competitors Emart and Lotte Shopping is high. In Emart's case, about 70 out of its total 132 stores are identified as overlapping with Homeplus."