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The Korea Herald
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THE INVESTOR
March 28, 2024

Stocks & Bonds

[EQUITIES] ‘E-mart slows down offline’

  • PUBLISHED :February 15, 2019 - 14:23
  • UPDATED :February 15, 2019 - 14:27
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E-mart’s offline discount stores will remain slow, said Korea Investment and Securities on Feb. 15, lowering the target price to 230,000 won (US$203.95) from 260,000 won.




The chain’s operating profit for the fourth quarter last year plunged 59 percent on-year due to low revenue from its discount stores, and annual revenue from its offline hypermarkets will remain flat this year, said analyst Heo Na-rae. 

The sector faces an unfavorable environment as competition from online stores continues and concerns persist over offline discounters, said the analyst, lowering the target price to reflect the reduced value of the sector.

In the long term, however, it will gain momentum as it manages the cost efficiency of its offline stores and achieves a turnaround thanks to positive signs from its online business, she forecast, delivering a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)

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