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(Photo = Shinsegae International) |
[Alpha Biz= Reporter Kim Minyoung] On the 28th, NH Investment & Securities lowered its target price for Shinsegae International from 22,000 won to 21,000 won, approximately a 4% decrease, while maintaining a 'Buy' recommendation. The previous day's closing price was 15,920 won.
NH Investment & Securities expects Shinsegae International's performance recovery to be slow due to the prolonged sluggish consumer market. The company’s consolidated sales for the second quarter are estimated to be 327.9 billion won, down 2% year-on-year, and operating profit is projected to be 14.2 billion won, a 23% decrease from the same period last year, falling short of consensus.
For the fashion segment on a standalone basis, sales are estimated to be 103.8 billion won, a 26% decrease from the previous year, and operating profit is expected to be 3 billion won, a 54% decrease year-on-year. This decline is attributed to the enduring sales base of OTB Group brands and the inevitable impact on fashion sales due to weak domestic consumption.
In the cosmetics segment, sales are expected to rise 9% year-on-year to 101.7 billion won, while operating profit is projected to decrease by 10% to 5.9 billion won. Growth rates for imported and own-brand sales are estimated to be 11% and 4%, respectively. According to analyst Jung, the launch of new brands, such as the fragrance brand Loewe, is anticipated to drive sales growth in the imported brands category.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
