[Edaily Reporter KIM YOON-JEONG ] Shinhan Investment Securities forecast that HYUNDAIDEPARTMENTSTORECO.,LTD(069960)will continue to see growth in its core business performance, driven by a recovery in department store purchasing power and improved profitability at duty-free shops. The firm raised its target price by 50% to 210,000 won and maintained its “Top Pick” rating for the stock.

On the 8th, Cho Sang-hoon, a research analyst at Shinhan Investment Securities, stated, “The rebound in department store purchasing power, which began in the third quarter of 2025, will continue throughout 2026, driven by the government’s expansionary fiscal policy, rising labor income, rising asset prices, and a surge in sales to foreign customers.” He added, “Despite the recent sharp rise in the stock price, the 12-month forward price-to-earnings ratio (PER) stands at 11 times, representing a discount compared to competitors.”
Shinhan Investment Securities projected that HYUNDAIDEPARTMENTSTORECO.,LTD’s second-quarter revenue would total 1.0102 trillion won, a 6.5% year-over-year decrease, while operating profit would decline by 1.1% to 86 billion won. These figures are in line with market consensus.
Research Analyst Cho explained, “While the core business is performing well, ZINUS continues to struggle,” adding, “Excluding ZINUS’s one-time gain in the second quarter of 2025 (a 19.9 billion won reversal of anti-dumping duty provisions), operating profit would have increased by 28% year-over-year.”
The department store segment is expected to maintain its robust growth momentum. Research Analyst Cho stated, “Total department store sales are projected to grow by 16%, continuing the high growth trend,” adding, “Driven by large stores such as Pangyo and The Hyundai, as well as foreign customers (accounting for 7.5% of sales), all product categories—including luxury goods and fashion—are expected to continue double-digit sales growth.” He added, “Operating profit is expected to increase for the third consecutive quarter (+67%) due to cost-efficiency efforts and the leverage effect resulting from sales growth.”
He also projected that the benefits of operational efficiency improvements at duty-free stores would begin to take full effect. Research Analyst Cho analyzed, “With sales at the Incheon Airport store expected to rise following the opening of the new DF2 zone (April 28), this will offset the sales slump resulting from the closure of the Dongdaemun store,” adding, “Thanks to operational efficiencies, the duty-free business is projected to turn a profit, moving from an operating loss of 1.3 billion won in the second quarter of 2025 to an operating profit of 5.2 billion won in the second quarter of 2026.”
In contrast, Shinhan Investment Securities projected that ZINUS would continue to experience declining sales and losses. The firm forecast that ZINUS’s second-quarter sales would decline by 34% year-over-year, while its operating loss would narrow from 30.1 billion won in the first quarter to 24.7 billion won in the second quarter.
Research Analyst Cho stated, “We have raised the target price by 50% to 210,000 won to reflect the upward revision of earnings estimates, strong department store sales, enhanced bargaining power resulting from the new entry into duty-free airport stores, and the return to operating profit,” adding, “We are focusing on growth in core business performance.”