Shinsegae PT raised to Won1,000,000; entering a multiple re-rating phase following earnings revisions

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Shinsegae PT raised to Won1,000,000; entering a multiple re-rating phase following earnings revisions

Global Research

29 June 2026ab

Shinsegae Equities

KoreaPT raised to Won1,000,000; entering a multiple

re-rating phase following earnings revisions Retailers, Broadline

12-month rating Buy

12m price target Won1,000,000Shifting focus from domestic demand recovery to inbound-driven growth

Prior : Won560,000

We raise our EPS forecasts and increase our price target for Shinsegae from

Won560,000 to Won1,000,000, reiterating our Buy rating. Shinsegae's share price has Price (26 Jun 2026) Won740,000

risen 197% YTD, but we still see meaningful upside ahead and consider the risk/reward RIC: 004170.KS BBG: 004170 KS

attractive. The stock is trading at a PE of 14x for 2026E and ~11x for 2027E, still below

the 18x peak multiples of Japan's department stores during the inbound tourism boom Trading data and key metrics

and the 20x valuations of Korea's duty-free operators before the pandemic. In our view, 52-wk range Won767,000-161,200

the rally so far has been driven primarily by earnings upgrades rather than a valuation re- Market cap. Won6,488b/US$4.22b

rating linked to inbound tourism. With China's tourists representing only 8% of Shares o/s 8.77m (ORD)

Shinsegae's revenue today versus 16-17% for Japan's peers during their peak inbound Free float 62%

cycle, we believe there is still room for further expansion. At the same time, domestic Avg. daily volume ('000) 87.5

macro indicators, including wage growth, disposable income and consumer sentiment, Avg. daily value (m) Won46,419.6

continue to improve. Combined with a multi-year inbound tourism upcycle, we remain Common s/h equity (12/26E) Won5686b

constructive on Shinsegae's earnings and valuation outlook through 2027E.