Shinsegae Group is moving to take over Shafer Vineyards, a U.S. winery which produces high-quality wines (cult wines) in Napa Valley, California, through Shinsegae Property, its real estate development affiliate.Shafer Vineyards was established by John Shafer in 1972. Its flagship wines, including “
The author is an analyst of NH Investment & Securities. He can be reached at jooyh@nhqv.com. -- Ed. Led by robust department store earnings, Shinsegae enjoyed its highest-ever quarterly OP in 4Q21. With the firm offering the strongest growth momentum among reopening plays, we advise loading up on it
Chivas Regal, the iconic global whisky of Pernod Ricard Korea (the Korean unit of the global wine and spirits company Pernod Ricard), has teamed up with the French luxury fashion brand Balmain to create the limited-edition ‘Chivas XV Balmain Collection.’The ‘Chivas XV Balmain Collection’ was designe
The author is an analyst of Shinhan Investment Corp. She can be reached at hpark@shinhan.com. -- Ed. Challenges facing the apparel sectorKorean apparel companies are expected to see light at the end of the tunnel after years of struggling for growth in the domestic market. While F&F has been seeking
Some members of the ruling Democratic Party are boycotting Starbucks following Shinsegae Group vice chairman Chung Yong-jin’s "crush commies" comments.On Jan. 11, Rep. Jin Sung-joon of the Democratic Party shared an article by Kim Ho-ki, a sociology professor at Yonsei University, on his Facebook pa
Shares of Shinsegae fell more than 6% on Jan. 10. The plunge is attributed to a contraction in investor sentiment caused by Shinsegae Group vice chairman Chung Yong-jin's controversial Instagram posts.Shinsegae's stock price closed at 233,000 won, down 17,000 won or 6.8% from the previous tr
Market research firm CEO Score said on Jan. 4 that the top 10 South Korean business groups mentioned customers 40 times in their New Year’s messages for this year, and the word became the most frequently mentioned word for the fourth consecutive year.“LG, Shinsegae, Hyundai Motor and Samsung Groups
The daily use of cryptocurrencies is accelerating. More and more stores are adopting cryptocurrency-based payment, as this method is more economical than credit card-based payment and more convenient for users.At present, PCI and MLK support both online and offline payment in South Korea. PCI was de
SK Group issued 8.602 trillion won of corporate bonds this year and became the largest issuer for the second consecutive year. Specifically, the maturity amount and net issuance are 5.496 trillion won and 3.106 trillion won, respectively. Last year, the figures were 5.369 trillion won and 3.305 tril
The author is an analyst of NH Investment & Securities. He can be reached at jinmyung.choi@nhqv.com. -- Ed. We maintain a Neutral stance on the machinery sector. Industrial demand from China has turned downwards, and demand from DMs (including the US and Europe) is slowing gradually. Higher logistic
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Grossly undervalued at 6.8x 12m fwd P/E We maintain BUY and TP of KRW340,000 for Shinsegae. We raise our revenue estimate by 10% to reflect a changed standard for the recognition of DFS revenue (sales promo
The author is an analyst of NH Investment & Securities. He can be reached at jooyh@nhqv.com. -- Ed. In contrast to concerns over intensifying competition among DFSs and a peak out in department store earnings, Shinsegae achieved its highest-ever quarterly OP in 3Q21. We expect the firm’s strong perf
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Revise down target price 8% to KRW340,000; stock undervalued at 7.7x 12m fwd P/E We maintain BUY and cut our TP by 8% to KRW340,000 for Shinsegae to reflect a drop in EV/EBITDA multiple for Department Store
Domestic consumer goods companies that have received investment from MBK Partners are drawing attention by making an impressive performance improvement. Analysts say that MBK Partners chairman Kim Byung-ju’s omnichannel strategy, which calls for strengthening online channels, is gradually paying off
The author is an analyst of NH Investment & Securities. He can be reached at jooyh@nhqv.com. -- Ed. In 1H21, Shinsegae’s department store division booked earnings that exceeded pre-Covid-19 levels. As for the DFS business, margins have improved on both the government’s airport DFS rent fee reduction
The author is an analyst of NH Investment & Securities. He can be reached at jooyh@nhqv.com. -- Ed. HDS announced better-than-expected earnings in 2Q21, thanks to sound operations for The Hyundai Seoul and higher sales for imported cosmetics. Both The Hyundai Seoul and newly-opened DFSs should hit m
South Korea's luxury goods market is continuing to grow regardless of COVID-19 and this growth is being led by those in their 20s and 30s.According to global market research firm Euromonitor International, the size of the market was more than US$12.5 billion last year, the seventh-largest in the
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Raise target price 8% to KRW260,000; maintain BUY with mid-/long-term investment horizon We maintain BUY on E-mart and raise our TP by 8% to KRW260,000. We recommend adopting a mid- to long-term investment
The Korea Customs Service announced on Aug. 3 that luxury bag imports totaled 2,057.8 billion won in the first half of this year, up 36 percent from a year ago.“Those from the European Union accounted for more than 60 percent of the imports, those from France and Italy added up to 1,335.8 billion wo
Shinsegae Group has increased its stake in Starbucks Coffee Korea.E-Mart announced on July 27 that it has acquired an additional 17.5 percent stake in Starbucks Coffee Korea from Starbucks International of the United States. With the acquisition, Shinsegae Group’s stake in the coffee shop franchise