[EQUITIES] ‘Lotte Shopping turns to black in Q3’
[THE INVESTOR] Lotte Shopping will beat market expectations in the third quarter, said Mirae Asset Daewoo on Oct. 10 maintaining a “trading buy” recommendation and 240,000 won (US$212.05) target price.
Its operating profit in the period will come in at 152.3 billion won, slightly higher than market consensus, as loss shrinks from completing sales of discount stores in China and size of business grows. Uncertainties over discount business in China have been eliminated and Lotte Shopping’s stock price from now on will hinge on possibilities of further improving its main business, said analyst Kim Myeong-ju.
As it continues to cut costs in department and discount stores, third-quarter earnings will be solid. However, operating profits improvement in its offline distribution channel from the efforts has already been reflected and recovery of its stock price will be limited for the time being, the analyst said.
By Hwang You-mee (firstname.lastname@example.org)