New World, Duty Free ... Starting deficit reduction in 2018 is uncertain - Meritz

[Korea nine hyerin financial newspaper reporter] Meritz Investment Bank Securities predict the short-term earnings momentum of the recovery in the New World Duty Free deficit reduction had raised its price target to 22 from the existing ₩ 190,000 million. Recommendation kept short-term buying.

The yangjihye Institute of securities is said "scores of Chinese entrants can slow down even a consolidated subsidiary Shinsegae DF (duty-free) with high sales growth (1Q11 W240bn estimate), while rising fast two days sales, '' losses is 15 billion won in 4Q the reduction compared to the first quarter loss of 100 million is expected, he said.

DF is passed to the New World in January recorded a turnover 75 billion won, operating profit of 1.2 billion won.

Sheep researchers' This headquarters gongtongbi (advertising promotion expenses, labor costs, etc.) are likely to have value, but the fourth quarter compared to deficit reduction reflected is high, said, "If this trend led Based on the second quarter and third quarter, the low base last year, the high increase in the previous year quarter consolidated operating profit is expected, he said.

However, the effects department store openings in the second half is expected to be slow.

Yang Researchers' 2 as branch expansion and opening effect of slowing from a separate reference earnings momentum is expected to gradually weaken, said, "The overall department store consumption recovery and mitigation competitive strength in our shop with a luxury brand lineup to contribute profits mean extra it needs to be supported, he said.

He added, "incheonjeom withdrawal from the 2018 results and the uncertainty of the new duty-free shops open Gangnam is still limited upside due to the high profitability recovery rate because the situation is expected.



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