Risk Reward Update

研报英文原文证据摘录

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M

Update

August 7, 2026 03:03 PM GMT

Morgan Stanley & Co. International plc, Seoul Branch+

GS Retail Co Ltd | Asia Pacific

Kelly H Kim, CFA

Equity Analyst

Risk Reward Update

What’s Changed

GS Retail Co Ltd (007070.KS)

From

To

Price Target

W21,500

W24,000

Bull Case

W29,000

W32,000

Base Case

W21,500

W24,000

Bear Case

W17,000

W19,000

Updated Components

EPS

Investment Thesis

Bull Base Bear Scenarios

Risk Reward for GS Retail Co Ltd (007070.KS) has been

updated.

Reason for change

Incorporating 2Q26 results, we have raised our EPS estimates by 5-9% for 2026-28.

GS Retail Co Ltd (007070.KS, 007070 KP)

S. Korea Consumer | S. Korea

Stock Rating

Industry View

Price target

Shr price, close (Aug 7, 2026)

52-Week Range

Underweight

In-Line

W24,000

W28,350

W29,950-15,950

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

EPS (W)**

Prior EPS (W)**

ModelWare EPS (W)

Prior ModelWare EPS

(W)

1,586

519

2,392

2,185

2,392

2,185

2,635

2,439

2,635

2,439

2,762

2,630

2,762

2,630

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

e = Morgan Stanley Research estimates

• Both CVS and supermarket posted stronger SSSG than our expectation

during 2Q26, which pushes our sales assumptions up by 1-2%.

• We also reflect high operating leverage effect from stable opex trend and

improving other affiliates' earnings.

• We lifted up our payout ratio assumption slightly to over 40% during the

period (was 35-40%) as the company emphasized shareholder return

improvement.

Coupled with these changes, our price target increases to W24,000 from W21,500

(up 12%).

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companies covered in Morgan Stanley Research. As a result,

investors should be aware that the firm may have a conflict of

interest that could affect the objectivity of Morgan Stanley

Research. Investors should consider Morgan Stanley

Research as only a single factor in making their investment

decision.