Business · Companies · 3 hrs ago
Broker expects seasonal boost for Shinsegae, cuts target price
Daishin Securities expects Shinsegae to benefit from peak-season shopping in the fourth quarter.
Shinsegae is a South Korean department store and retail group.
The brokerage kept its buy rating but cut its target price from 1 million to 720,000 won.
It expects the company’s third-quarter revenue to rise 7% year on year to 3.0151 trillion won, and operating profit to increase 70% to 170.4 billion won.
These are estimates, not reported results, and the brokerage said department store sales growth had slowed during the quarter.
It said fourth-quarter seasonal demand could support the department store business, with semiconductor companies’ bonus payments in early 2027 also potentially helping demand.
The brokerage also said Shinsegae’s shareholder returns may improve, but gave no details of what happens next.
Daishin Securities expects Shinsegae to benefit from stronger seasonal consumer momentum in the fourth quarter.
The brokerage cut its target price for Shinsegae to 720,000 won from 1 million won but kept its buy rating.
It said department stores could become more attractive to investors ahead of seasonal spending and bonus payments by semiconductor companies.
Daishin estimated Shinsegae’s third-quarter consolidated sales at 3.0151 trillion won and operating profit at 170.4 billion won.
It forecast the figures would be up 7% and 70%, respectively, from a year earlier.
- Who
- Shinsegae and analyst Yu Jeong-hyeon of Daishin Securities.
- What
- Daishin expects a seasonal boost for Shinsegae but lowered its target price and maintained its buy rating.
- When
- The article was published on October 14, 2026; it said Daishin issued its analysis on the 15th.
- Where
- Not stated.
- Why
- Daishin expects seasonal consumer momentum and greater appeal for department stores, while lowering the target price.
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- Target price
- Cut from 1 million won to 720,000 won
- Investment rating
- Buy maintained
- Third-quarter sales estimate
- 3.0151 trillion won
- Third-quarter operating profit estimate
- 170.4 billion won
- Estimated year-on-year growth
- Sales 7%; operating profit 70%
1 source
What people are saying
The fourth-quarter peak season and semiconductor companies’ bonus payments in the first quarter of next year could make the department-store channel relatively attractive to investors again.
It is worth noting that the likelihood of Shinsegae increasing shareholder returns compared with the past has grown.