[Edaily Reporter Kim Kyung-eun ] On the 21st, LS SECURITIES raised its target price for HYUNDAIDEPARTMENTSTORECO.,LTD(069960)by 81.8% from 110,000 won to 200,000 won, citing positive core business performance. The firm maintained its “Buy” rating.

Oh Rin-ah, an analyst at LS SECURITIES, stated in a report released that day, “Based on 12-month forward (12MF) earnings estimates, the current stock price trades at a price-to-earnings (P/E) ratio of 9.7x, which is at a reasonable level.”

HYUNDAIDEPARTMENTSTORECO.,LTD’s second-quarter consolidated revenue is expected to be 1.0344 trillion won, down 4.2% year-over-year, while operating profit is projected to be 83.2 billion won, down 4.3% year-over-year—results in line with market expectations.

Analyst Oh explained, “Same-store sales at department stores continued to show strong growth, rising 15% in April, 20% in May, and 14% in June,” adding, “Considering that June had two fewer weekend business days compared to the previous year, the actual sales trend was even more robust.”

He continued, “Sales to foreign customers also increased by 40% in April, 66% in May, and 92% in June, expanding their share of total sales to approximately 8%,” adding, “It is also positive that foreign consumer spending is spreading not only to The Hyundai Seoul and the Trade Center but also to the Pangyo, Main, Songdo, and Gimpo branches.”

Furthermore, he noted, “Watches, jewelry, and luxury goods continued to post strong growth, and home appliances also performed well due to promotional effects.” He added, “While the year-over-year growth rate is expected to rise to around 6% starting in July, which could pose some pressure, we anticipate that the growth trend will continue given the robust demand.”

Regarding duty-free stores, the analyst stated, “Sales at Incheon Airport’s DF2 are rapidly stabilizing, and profit improvement is gaining momentum.” They added, “Monthly average daily sales expanded to 4.4 billion won in April, 5.0 billion won in May, and 6.5 billion won in June, while sales at the airport store increased from a first-quarter monthly average of 1.2 billion won to 3.8 billion won in June.”

He further analyzed, “DF2 is understood to have reached the break-even point starting in May,” adding, “As its buying power as the top operator at Incheon Airport strengthens, the cosmetics purchase margins and contribution margins at its downtown stores are also improving.”

However, he offered a less optimistic assessment of ZINUS’s performance recovery, projecting that ZINUS’s operating loss would remain at a level similar to that of the first quarter.

Researcher Oh added, “ZINUS is undergoing restructuring, including the disposal of its U.S. factory, the planned sale of its Chinese factory, and the reduction of its product lineup (SKUs),” noting, “The company aims to divest inefficient assets by the end of 2027 and secure annual cost savings of approximately 50 billion won starting in 2028.”