[Market Focus] Shinsegae Surges Over 9% on Expectations of Continued Profit Growth

The stock price of Shinsegae is showing strength, as the company's profit growth trend is expected to continue this year.

As of 9:16 a.m. on January 7, Shinsegae was trading at 261,500 won, up 22,500 won (9.41%) from the previous trading day.

On this day, SangSangIn Securities maintained its "Buy" investment opinion on Shinsegae and raised its target price from 230,000 won to 320,000 won, calling it "the most comfortable choice within the retail sector this year." The brokerage explained that the profit growth driven by department store sales is continuing, and concerns about increased losses due to the decision to suspend operations at some duty-free airport locations are limited.

Kim Hyemi, a researcher at SangSangIn Securities, stated, "The improvement in domestic consumer sentiment resulting from the increase in asset values such as stocks and real estate is showing a polarization pattern," and added, "The effect of the rising exchange rate is not only restricting overseas spending by domestic consumers but also expanding the purchasing power of foreign customers, which is benefiting department stores." "Additionally, there are growing expectations for the development of the Seoul Express Bus Terminal land asset."

She said, "Given last year's proactive investment activities and increased depreciation expenses, which created a low base, profit growth driven by department store sales is expected to continue through the second half of this year," and added, "Concerns about increased losses due to the decision to suspend operations at some duty-free airport locations are also limited."