Business · Companies · 3 hrs ago
Broker raises GS Retail price target as profits improve
Heungkuk Securities raised its target price for GS Retail from 31,000 won to 33,000 won and kept its buy rating.
GS Retail’s third-quarter operating profit rose 18.9% from a year earlier, to 132.1 billion won, while sales increased 3.4% to 3.3 trillion won.
Supermarkets and home shopping drove the improvement, with operating profit up 159.8% and 108.7%, respectively; convenience-store profit fell 8.1%.
The company has exited or sold several loss-making businesses since 2022, including its Fresh Mall and health-and-beauty businesses, which had weighed on overall results.
Heungkuk Securities expects GS Retail’s full-year operating profit to reach 373.7 billion won, up 27.9% from last year, and sees further gains from supermarket growth and reduced losses in other units.
Convenience-store profitability remains a key issue, and the broker says the company should focus more on returning value to shareholders.
Heungkuk Securities raised its price target for GS Retail from 31,000 won to 33,000 won and maintained its buy rating.
The brokerage said improved performance in key businesses and restructuring had strengthened profitability.
GS Retail’s third-quarter revenue rose 3.4% year on year to 3.3 trillion won, while operating profit increased 18.9% to 132.1 billion won.
Supermarket and home-shopping operating profits rose 159.8% and 108.7%, respectively, while convenience-store operating profit fell 8.1%.
Heungkuk forecast full-year revenue of 12.5 trillion won and operating profit of 373.7 billion won.
- Who
- Heungkuk Securities raised its price target for GS Retail.
- What
- It raised the target to 33,000 won from 31,000 won and kept its buy rating.
- When
- November 5, 2026.
- Where
- South Korea. The article does not state a more specific location.
- Why
- The brokerage cited improving results in key businesses and the effects of restructuring loss-making operations.
This story does not have two clearly opposing sides.
GS Retail exited Fresh Mall and its health-and-beauty business and sold its stake in Ten by Ten.
GS Retail stopped its Indonesian supermarket and PERSF businesses and sold its stake in About Pet.
GS Retail reported revenue of 3.3 trillion won and operating profit of 132.1 billion won, up 3.4% and 18.9% year on year.
Heungkuk Securities raised its GS Retail price target from 31,000 won to 33,000 won and maintained its buy rating.
- Price target
- Raised from 31,000 won to 33,000 won
- Third-quarter revenue
- 3.3 trillion won, up 3.4% year on year
- Third-quarter operating profit
- 132.1 billion won, up 18.9% year on year
- Supermarket operating profit
- Up 159.8% year on year
- Home-shopping operating profit
- Up 108.7% year on year
- Full-year forecast
- Revenue of 12.5 trillion won; operating profit of 373.7 billion won
1 source
What people are saying
Other divisions’ restructuring effects are emerging, strengthening the fundamentals of the earnings structure.
Re-rating of the share price through improved performance will be sustainable.
Despite the recent share-price rebound, the forward 12-month PER and PBR remain undervalued at 8.6 times and 0.6 times, respectively.
There is a need to focus more on expanding shareholder returns.