Hyundai Department Store PT raised to Won275k; laggard catch-up story remains intact

研报英文原文证据摘录

Hyundai Department Store PT raised to Won275k; laggard catch-up story remains intact

d that

12/26E 11,107 13,448 21 12,066

should continue through 2H26E. We view the inbound recovery as a multiyear structural

12/27E 13,095 17,204 31 14,792

trend, supporting duty free earnings above market expectations. Meanwhile, Zinus

12/28E 14,835 21,017 42 16,937

should benefit from recovering Amazon orders and an easier base in 2H, leading to

broad based earnings improvement across all business segments. Jae Hyung Choi

Analyst

Q226E OP to beat consensus by 15% jaehyung.choi@ubs.com

+82-2-3702 8172

We expect HDS to deliver Q2 OP (expected in early Aug) of Won97bn, 15% above

consensus. Dept store SSSG should grow 16%, driven by continued strength in foreign Ju Seong Lee

tourist spending. Despite the seasonal property tax burden of Won50bn, we expect Analyst

juseong.lee@ubs.com

margins to improve by 6ppt YoY, supported by a richer sales mix led by higher margin

+82-2-3702 8106

fashion products. Duty free earnings should improve further from Q126 on solid

inbound demand, while Zinus is expected to narrow its loss to around Won20bn,

reflecting sequential improvement from the previous quarter.

Valuation: trading at 11.4x 2027E PE, in line with historical peak

We raise our 2026/27E OP by 6%/14% reflecting faster-than-expected dept store SSSG

(we estimate 2026/27 SSSG at 13%/11%) and duty free / Zinus earnings recovery. We

raise our PT from Won143k to Won275k based on a 16x target P/E (the avg 2025-26

trading multiple of the Japan big 3 dept stores; previously 11x), and roll forward our

valuation base to 2027E from 2026E-27E avg.

Highlights (Wonb) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 4,208 4,188 4,230 4,452 4,887 5,357 5,722 6,005