[E-Daily Reporter Kim Hyung-il ] DaishinSecurities maintained its “Buy” rating on HYUNDAIDEPARTMENTSTORECO.,LTD(069960), reflecting steady growth in the department store segment and the return to profitability of its subsidiary, ZINUS. The target price was set at 130,000 won, a 24% reduction from the previous level, to reflect the KOSPI valuation adjustment.

On the 9th, DaishinSecurities analyst Yoo Jeong-hyun analyzed that HYUNDAIDEPARTMENTSTORECO.,LTD’s total sales for the third quarter of 2026 reached 2.5681 trillion won, a 3% increase year-over-year, while operating profit rose 19% to 94.6 billion won, exceeding market expectations.

The department store segment drove the results. Same-store sales growth in the third quarter reached 8%. Despite increased volatility in the stock market, growth continued amid sustained positive consumer sentiment, driven by rising sales of high-margin, cyclical product categories—such as domestic fashion—and increased revenue from foreign tourists. Fueled by strong sales growth and a robust performance in the fashion sector, the department store segment’s operating profit rose 28% year-over-year.

However, the growth rate of the department store segment slowed slightly compared to the first half of the year. Unlike in the first half, the third quarter did not benefit from luxury price hikes, and the decline in the exchange rate led to an increase in overseas travelers. DaishinSecurities predicted that the sluggish stock market in the second half of the year and high base effects would also impact the department store segment’s growth rate.

Duty-free stores also continued to show improved performance. Following the launch of DF2 in the first half of the year, the number of domestic and international tourists increased, pushing third-quarter operating profit to 3.2 billion won—up from 1.3 billion won in the same period last year. In particular, the recovery in profitability at the subsidiary, ZINUS, was notable. Although the company continued to post operating losses due to U.S. tariffs, the third-quarter loss narrowed significantly to 12.5 billion won, down from the first-half average of 28 billion won.

DaishinSecurities lowered the valuation used to calculate the target price. Reflecting the KOSPI valuation adjustment, the firm applied an expected P/E ratio of 7 for next year and set the target price at 130,000 won, a 24% reduction from the previous target. However, it assessed that the current stock price is undervalued at a level corresponding to an expected P/E ratio of 4.7 for next year.

Analyst Yoo concluded, “Given that expectations for year-end consumption in the fourth quarter remain valid and that ZINUS’s earnings improvement is likely to continue, it is the safest investment choice among the three department store companies.”