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[Alpha Biz=(Chicago) Reporter Paul Lee] Korea Investment & Securities lowered E-Mart's target stock price by 8.7% from 115,000 won to 105,000 won.
"E-mart's consolidated sales in the fourth quarter of last year will fall 0.5% year-on-year, operating profit will rise 63.5%, and sales will meet market expectations, but operating profit will fall below 53.6%," Korea Investment & Securities said on the 23rd. "The reason for the drop in operating profit is due to Shinsegae E&C's poor performance and continued deficit in online business."
which recently released a self-rescue plan to improve its financial structure, Korea Investment & Securities said, "Shinsegae E & C will issue 200 billion won in private equity bonds in the future, and financial institutions (140 billion won) and Shinsegae I & C (60 billion won) will purchase bonds issued by the construction," adding, "Shinsegae E & C has decided to merge with Shinsegae Yeongnangho Resort, another subsidiary of E-Mart, to improve its financial structure."
Korea Investment & Securities added, "Although Shinsegae E&C's poor performance and related risks have not been fully resolved, it is positive that there was no direct support from E-Mart, which was feared in the market."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
