[Edaily Reporter Kwon Oh Seok ] SKSecurities announced on the 6th that it is maintaining its “Buy” investment rating and target price of 33,000 won for Lotte Corporation(004990).

Choi Kwan-soon, an analyst at SKSecurities, stated, “LOTTE SHOPPING CO., LTD.’s stock price has risen 130.8% compared to the start of the year. The strong performance of the department store segment, driven by an increase in foreign tourists due to a rising exchange rate, and the discount store segment’s spillover benefits from the closure of Homeplus stores are the factors behind LOTTE SHOPPING CO., LTD.’s stock price rise.”
He added, “Currently, LOTTE SHOPPING CO., LTD. accounts for 49.1% of Lotte Corporation’s NAV (net asset value), and Lotte Corporation’s NAV has increased by 18.0% since the beginning of the year. Nevertheless, Lotte Corporation’s stock price has fallen by 14.3%, failing to reflect the rise in NAV at all.”
He noted, “The current discount relative to Lotte Corporation’s NAV stands at 38.3%, having risen to its highest level since 2024 (average 18.3%), making it highly attractive from a valuation perspective,” and "Amid easing financial risks for the group, the projected 2026 dividend per share of 1,250 won (a dividend yield of 5.3%) and the cancellation (or use to improve the financial structure) of treasury shares (23.7%) serve as strong factors supporting the stock price,” he noted.
He projected second-quarter earnings of 4.1 trillion won in revenue (up 1.8% year-over-year) and 153.3 billion won in operating profit (up 7.8%). Analyst Choi added, “FOODWELL CORPORATION is expected to continue its domestic management improvement initiatives and the trend of growing overseas sales, while Korea Seven is projected to reduce its operating loss due to the effects of closing inefficient stores.” He continued, “Thanks to group-wide management efficiency improvements and a focus on profitability, we expect annual revenue to decline by 3.7% in 2026, but operating profit to increase by 56.8%.”