[Edaily Reporter Kwon Oh Seok ] HEUNGKUK METALTECH CO.,LTD. announced on the 16th that it is maintaining its “Buy” rating on GS Retail(007070)but lowering its target price from 41,000 won to 35,000 won.

Park Jong-ryul, an analyst at HEUNGKUK METALTECH CO.,LTD., stated, “The company’s earnings structure has been strengthened as improvements in the convenience store, supermarket, and home shopping segments were accompanied by the effects of restructuring in other divisions,” adding, “A revaluation of the stock price driven by improved earnings is likely to be sustainable, and efforts to expand shareholder returns should proceed simultaneously.”
He projected that third-quarter consolidated revenue would reach 3.3 trillion won (up 4.4% year-over-year) and operating profit 126.3 billion won (up 13.6%), marking another quarter of solid operating performance following the previous quarter. He explained, “This is the result of robust operating profit generation from convenience stores and home shopping, coupled with profit growth in the supermarket segment and the continued profitability of the common and other segments.”
Analyst Park noted, “While the Development and Common & Other segments have historically had a negative impact on consolidated earnings, the company has been positively improving its bottom line since 2022 by exiting loss-making businesses—such as the digital business ‘Fresh Mall’ and the Health & Beauty segment—and by selling its stake in Ten by Ten.” He elaborated, “In 2025 as well, the company discontinued its supermarket business in Indonesia and the Persp business in the second quarter, and sold its stake in About Pet in the third quarter.”
Accordingly, the company revised its 2026 full-year consolidated revenue forecast to 12.5 trillion won (+4.7%) and operating profit to 361.9 billion won (+23.9%). Analyst Park emphasized, “While convenience store profitability is expected to slow somewhat in 2025 due to the base effect resulting from the positive impact of consumer coupons, this is offset by stable profit generation from supermarkets and home shopping, as well as improved performance in other segments.”
He added, “The convenience store segment will strengthen its focus on sound management centered on high-efficiency stores, while the supermarket segment will support the profit growth trend by enhancing integrated online and offline competitiveness through the expansion of franchise stores and synergies with quick commerce.” He added, “Along with stable cash flow from the home shopping segment, the losses in the shared services and other segments—which have long been a drag on company-wide performance—are expected to decrease dramatically, leading to a clear qualitative improvement in consolidated operating profit.”