LS SECURITIES forecasted on the 28th that BGF Retail would benefit as convenience stores are designated as places to use government consumption coupons, coinciding with the peak season effect in the second half of the year. The target stock price remains at 145,000 won, and the investment opinion is maintained as 'buy.'
BGF Retail's consolidated sales for the second quarter were 2.2336 trillion won, with operating profit at 70.2 billion won. This represents a 1.5% increase and a 7.9% decrease, respectively, compared to the same period last year. The growth rate of existing convenience stores is estimated to have fallen by 1%, likely due to external factors such as weather. While the number of visitors decreased due to an increase in overseas travel and price hikes, products like highballs appear to have contributed to sales gains.
In the second half of the year, benefits from the government's distribution of consumption coupons are expected. The government started distributing consumption coupons worth at least 150,000 won to all citizens on the 21st, designating convenience stores as places to use them. As the use of consumption coupons began, sales of convenience store ready-to-eat meals and processed foods are estimated to have increased.
Orina, a researcher at LS SECURITIES, noted, 'Recently, convenience stores have begun to develop non-food areas such as health functional foods and beauty products,' and added, 'The designation of convenience stores as places to use consumption coupons is expected to help reduce barriers to purchasing in these categories.'