[Click eStock] "Shinsegae International, Time Needed Until Earnings Rebound"

NH Investment & Securities lowered the target price of Shinsegae International to 10,500 KRW on the 15th, citing that it will take time for earnings to rebound.

Jiyoon Jeong, a researcher at NH Investment & Securities, explained, "The recent domestic and international environment is unfavorable to Shinsegae International, which holds a large portfolio of high-priced imported brands," adding, "We are lowering the target price from the previous 13,000 KRW to 10,500 KRW."

Reflecting factors such as the direct entry of overseas brands into Korea, a slowdown in domestic and international luxury demand, prolonged strong dollar trends, and a decline in gross profit margin due to rising purchase prices of imported brands, operating profit estimates for this year and next year have been revised down by 21% and 13%, respectively.

Researcher Jeong stated, "We expect a profit growth turnaround from the second half of 2025 due to cost reductions and base effects, but it will take time for actual profitability improvement, with the company's operating profit margin remaining around 3%."

Meanwhile, Shinsegae International's first-quarter earnings are estimated to fall short of market expectations. First-quarter sales are expected to be 309.5 billion KRW, similar to last year, but operating profit is projected to decrease by 46% year-on-year to 6.1 billion KRW.