[Edaily Reporter Kim Kyung-eun] #Shinsegae is trading higher in early trading on the 10th, buoyed by positive earnings forecasts from the securities industry.

According to MP Doctor, as of 9:12 a.m. today, Shinsegae is trading at 670,000 won, up 46,000 won (7.37%) from the previous trading day.

This is interpreted as a result of securities firms successively raising their target prices for Shinsegae, which has stimulated investor sentiment. Kiwoom Securities raised its target price for Shinsegae to 850,000 won today, a 34.9% increase from the previous level. Korea Investment & Securities also raised its target price for Shinsegae to 990,000 won the previous day.

Park Sang-jun, an analyst at Kiwoom Securities, said, “Shinsegae is expected to demonstrate the strongest growth within the sector, driven by a robust domestic consumer market, increased sales to foreign customers, the renovation of large-scale stores, and high growth in luxury goods,” adding, “In particular, strong department store sales are expected to continue in the medium term.”

The forecast for Shinsegae’s second-quarter consolidated operating profit was raised to 171 billion won, and the forecast for this year’s annual operating profit was raised to 816.9 billion won.

Analyst Park explained, “As the domestic stock market continues its upward trend, the wealth effect is proving stronger than expected, and foreign sales are projected to more than double year-over-year, driven by factors such as an increase in Chinese inbound tourists.” He added, “In particular, considering the company’s higher growth rate compared to competitors due to the effects of large-scale store renovations and strong growth in luxury goods sales, we have revised our forecast for second-quarter same-store sales growth at department stores upward to 25% (on a comparable basis).”