[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 1st that it is maintaining its “Buy” rating and target price of 180,000 won for BGF Retail(282330).

Joo Young-hoon, an analyst at NH INVESTMENT & SECURITIES, stated, “In the third quarter, same-store sales growth is expected to slow temporarily due to the base effect resulting from the distribution of consumer coupons to support livelihood recovery during the same period last year.” He added, “Nevertheless, we estimate that the company will have no difficulty continuing its trend of operating profit growth, and excluding this factor, there has been no change in its fundamentals.”
He projected that third-quarter consolidated revenue and operating profit would be 2.5188 trillion won (+2.3% year-over-year) and 101.5 billion won (+4.0%), respectively, in line with the consensus estimate for operating profit. The lead analyst emphasized, “While revenue trends were somewhat sluggish in July and August, we assess that a recovery has been underway since September,” adding, “Store openings continue to show a net increase focused on high-performing locations, and given the significant challenges faced by smaller operators, BGF Retail’s market share continues to rise.”
Unlike the second quarter, when one-time costs related to the Korean Truckers’ Solidarity strike were recognized, the analyst estimated that there would be no unusual cost-related items in the third quarter.
He argued that the company’s consolidated operating profit has stagnated over the past four years, and that concerns over a resulting slowdown in growth are the primary reason for the decline in valuation. Analyst Ju noted, “We should pay attention to the fact that recovery has begun again in 2026,” adding, “With a full-scale recovery in same-store sales and the easing of the burden from increased depreciation expenses, consolidated operating profit is projected to rebound to 295.2 billion won (+16.2%) in 2026.”
He added, “Had it not been for the base effect related to the ‘People’s Livelihood Recovery’ consumption coupons and one-time expenses, the actual improvement in operating profit would have been even greater,” and noted, “We anticipate an increase in enterprise value reflecting the full-scale improvement in earnings. Given that the current stock price is trading at a P/E ratio of just 9.9 times based on 2026 estimates, the stock offers sufficient investment appeal from a valuation perspective.”