[Market Focus] Shinsegae International Jumps Over 11% on Second Half Rebound Expectations

Shinsegae International is showing strong performance in early trading on June 19. This is due to expectations from the securities industry of a rebound in earnings in the second half of the year.

As of 9:42 a.m. on this day, Shinsegae International is trading at 12,620 won, up 1,270 won (11.19%) from the previous trading day.

On this day, Sangsangin Securities maintained its 'Buy' investment rating for Shinsegae International and raised its target price from 17,000 won to 18,000 won.

Kim Hyemi, a researcher at Sangsangin Securities, stated, "From the third quarter, a turnaround in earnings is expected, as extremely low operating profit base effects, an increase in inbound demand, and improvements in domestic consumption sentiment all come together." She added, "While sales have consistently remained above 1.3 trillion won, the sharp decline in operating profit is due to the effects of fixed costs, the occurrence of one-off expenses, and marketing investments."

She also noted, "From the second half of the year, the company is expected to see an overall recovery, driven by sales growth from the expansion of major overseas fashion brand stores, improvement in product cost ratios due to a decline in exchange rates, expectations of a recovery in domestic fashion consumption, growth in key channels for cosmetics due to increased inbound demand, and improvements in the fashion-focused mix and rebranding at the holding company."