The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. Although both high-base effect and the burden of rising raw material costs are in play in 2Q21, we believe that concerns over earnings deterioration have already been priced in. Moving towards yearend
The author is an analyst of NH Investment & Securities. She can be reached at jy.lee@nhqv.com. -- Ed. − On Jun 24, Emart announced its decision to acquire an 80.01% stake in eBay Korea for W3.4tn.− We expect the majority of funds for the acquisition to be amassed through asset securitization and the
Shinsegae Group is poised to become the second-largest player in the domestic e-commerce market by taking over eBay Korea.E-Mart announced on June 24 that it will sign a stock purchase agreement (SPA) with eBay of the United States to acquire an 80.01 percent stake in eBay Korea for 3.4404 trillion
The author is an analyst of Shinhan Investment Corp. He can be reached at mj1224@shinhan.com. -- Ed. Focus on expansion of commerce business in 2H21aggressive push for expansion of its commerce business is expected to pick up pace from 2H21. Collaboration efforts with E-Mart following the recent sha
MBK Partners, a private equity fund (PEF) operator that owns Homeplus, has jumped into the race to take over Korea's second-largest delivery app Yogiyo.MBK Partners and Affinity Equity Partners are among the potential buyers that participated in the main tender for Yogiyo, which began on June 17
eBay Inc. of the United States officially announced on Jan. 19 that it would sell eBay Korea for five trillion won. Most in the industry said that the company was overvalued.However, the atmosphere changed after Coupang went public in New York in March, when the loss-making company posted a market c
The author is an analyst of NH Investment & Securities. She can be reached at jy.lee@nhqv.com. -- Ed. The global golf boom has continued in 2Q21. Expectations are rising for FILA Holdings on the arrival of a peak season and new product rollouts. Believing that recent strong sales growth in the DFS a
The author is an analyst of NH Investment & Securities. She can be reached at jy.lee@nhqv.com. -- Ed. In 2H21, we recommend paying attention to stocks that: 1) have yet to rise in price; or 2) boast attractive valuations, as the majority of retail/fashion sector plays have already seen share price r
The tender for eBay Korea, the third-largest e-commerce company in Korea, has narrowed down to a two-runner race between traditional distribution rivals -- Lotte and Shinsegae.Lotte Shopping and Shinsegae E-Mart submitted letters of intent to acquire eBay Korea in a tender held on June 7.Lotte Shopp
With the tender for eBay Korea imminent, competition is heating up among potential buyers to outsmart their rivals and acquire the coveted e-commerce company. As the heat of the competition rose excessively, the tender schedule was postponed once.Participants in the tender are busy tracking the move
The authors are analysts of Shinhan Investment Corp. They can be reached at jwsung79@shinhan.com and hanny.lee@shinhan.com, respectively. -- Ed. April domestic duty-free sales up 9.6% MoMCombined sales of domestic duty-free operators came in at USD1.39bn (+9.6% MoM; KRW1.56tr) for April. Duty-free s
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. Shinsegae Food shares have risen rapidly of late, driven by expectations of a recovery in eating-out demand. That said, with its margins set to improve to exceed pre-Covid-19 level thanks to a mid/lon
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. We maintain a Positive rating on the F&B sector. Admittedly, there exist concerns that the sector could face high base effect in 2H21 as a number of players enjoyed an increase in food demand and prod
The author is an analyst of NH Investment & Securities. She can be reached at jy.lee@nhqv.com. -- Ed. Sector earnings should continue to improve in 2H21 in response to both low base effect and deferred demand. With our key investment points including the continued strength of sports/outdoor category
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Stock may be sluggish over near term but climb over mid to long term We maintain BUY and our TP of KRW240,000 for E-mart. The stock may perform poorly over the near term but should continue trending upwards
The author is an analyst of NH Investment & Securities. She can be reached at jy.lee@nhqv.com. -- Ed. Shinsegae International’s 1Q21 results surpassed expectations thanks to strong demand for overseas fashion and cosmetics products. As overseas travel will likely remain challenging for the time bein
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Raise target price by 14% to KRW400,000; current stock price corresponds to only 11.6x 2021E P/E We maintain BUY and raise our TP by 14% to KRW400,000 based on increases to 2021E/2022E/2023E OP of 23%/19%/1
ESG management and investment are becoming a new normal paradigm. Under the circumstances, South Korean enterprises are flocking to the corporate bond market, where more funds are available with interest rates lower than bank loan rates.Especially, the top 10 business groups accounted for 64 percent
The author is an analyst of NH Investment & Securities. She can be reached at jy.lee@nhqv.com. -- Ed. In 1Q21, earnings at both Shinsegae department stores and the DFS business likely came close to pre-Covid-19 levels. We expect the firm’s department store sales to continue booming this year thanks
The author is a strategist at NH Investment & Securities. He can be reached at lawrence.kim@nhqv.com. -- Ed.Urakami Kunio, a prominent analyst of Japan, believed that the stock market follows a cycle, much like the four seasons of nature. Based on his theory, we believe that the Korean stock market