[Click eStock] "Lotte Hi-Mart, Possible Return to Profit in First Half of This Year"

On the 9th, IBK Investment & Securities forecasted that Lotte Hi-Mart's first-quarter performance this year would be sluggish but expected the deficit to narrow, anticipating a turnaround to profitability in the first half of the year based on structural improvements. The investment opinion was maintained as 'Buy' with a target price of 9,000 KRW.

Lotte Hi-Mart is estimated to record sales of 525.5 billion KRW in the first quarter of this year (a 0.1% increase compared to the same period last year) and an operating loss of approximately 10.4 billion KRW. Nam Seong-hyun, a researcher at IBK Investment & Securities, stated, "While it is clear that the continued deficit is a negative figure, considering the ongoing store closures and the sluggish consumer market, it can be evaluated as a positive sign." He projected that same-store sales likely grew, supported by the recovery in sales of small and medium-sized home appliances and global appliance brands.

Researcher Nam predicted that Lotte Hi-Mart's performance would turn profitable in the first half of this year. He explained, "There is a high possibility that the effects of completing online and offline restructuring will emerge, and the recovery in sales of home appliances and global appliances is progressing rapidly," adding, "There is also a high possibility of consumer recovery due to the stabilization of the domestic situation." Although profit improvement has been delayed due to increased fixed costs from years of restructuring, he assessed that profit growth would be possible starting from the second quarter, which enters the seasonal peak period.