IBK Securities has maintained its target price for Emart at 120,000 won, citing a strong potential for the company's value to be reassessed in the medium to long term due to the growth of Shinsegae Property. The firm also reiterated its 'buy' recommendation.
Nam Seong-hyun, a researcher at IBK Securities, stated, "In the medium to long term, Emart's core business is likely to be Shinsegae Property." He noted that the expansion of Starfield construction sites is leading to sustained increases in operational revenue, and there is a robust pipeline for new developments that could further enhance value.
He particularly highlighted that Shinsegae Property is diversifying beyond its traditional shopping mall focus to include mixed-use developments such as theme parks, water parks, golf courses, hotels, resorts, and residential complexes. This mixed-use development model is expected to be a key factor in securing competitiveness and driving future revenue growth.
Financial performance is also showing improvement. Last year, Shinsegae Property reported an operating profit of 174 billion won, a 125.1% increase from the previous year, with the first quarter of this year yielding an operating profit of 27 billion won. Nam explained, "The revenue increase from the operations of Starfield and Centerfield is driving the improvement in performance."
Emart's core business is also expected to continue its recovery in the near term. Analysts believe that the weakening operational capabilities of competitors, improvements in online business practices, enhanced profitability from consolidated purchasing, and better performance from affiliated companies will positively impact results. Nam emphasized, "In the short term, the recovery of core fundamentals will support performance, but in the medium to long term, the growth potential of Shinsegae Property will be the key driver of value increase."
* This article has been translated by AI.
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