[Feature Stock] Hyundai Department Store Rises Over 4% on Growing Domestic and Foreign Consumption

Driven by the recovery of domestic consumption and the increasing influx of foreign visitors, Hyundai Department Store’s stock price is on the rise as its performance continues to improve.

As of 10:18 a.m. on January 14, Hyundai Department Store was trading at 94,600 won, up 3,900 won (4.30%) from the previous trading day.

Daishin Securities maintained its “Buy” investment rating and a target price of 100,000 won for Hyundai Department Store on this day.

Yoo Junghyun, a researcher at Daishin Securities, stated, “Recently, domestic department stores have been spotlighted as beneficiary channels due to the sharp increase in the number of foreign visitors to Korea. In the past, department stores were criticized for their structurally limited growth as channels focused solely on domestic demand, but as sales to foreign customers are rapidly increasing, they are overcoming the limitations of low growth.”

The company is expected to meet market expectations for its fourth-quarter results last year, with total sales of 2.7819 trillion won (a 2% increase year-on-year) and operating profit of 133 billion won (a 23% increase).

Researcher Yoo said, “The positive wealth effect from the booming stock market has boosted consumer sentiment, which has had a favorable impact on sales. In particular, profitability at department stores has improved as domestic fashion sales, which have high margins, increased by a mid-single-digit percentage.”