Hanwha Investment & Securities raised the target price for Hyundai Department Store to 100,000 won, following strong performance as its operating profit exceeded market expectations in the second quarter.
According to Hanwha Investment & Securities, Hyundai Department Store reported sales of 2.47 trillion won and operating profit of 86.9 billion won in the second quarter, surpassing market expectations of 80.4 billion won on an operating profit basis.
Lee Jin-hyeop, a researcher at Hanwha Investment & Securities, said, "The expense efficiencies of department stores and duty-free shops contributed to performance stability, along with ZINUS's turnaround in performance that led to strong results."
Hanwha Investment & Securities also forecasted that the government's temporary visa-free policy for Chinese group tourists would serve as a positive factor, as the increase in inbound Chinese tourists can directly benefit duty-free shops.
The researcher noted, "If the influx of group tourists accelerates with the implementation of the visa-free policy, the previously remote prospects for the recovery of the duty-free sector will become more visible," adding that "the likelihood of duty-free shops turning a profit in the second half of the year is also high."