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Photo = Yonhap news |
[Alpha Biz= Paul Lee] SK Securities has analyzed Hyundai Department Store, suggesting that while its stock price may decline after the dividend date (April 3), any correction could present a buying opportunity. However, the brokerage firm did not provide a specific investment rating or target price.
SK Securities highlighted Hyundai Department Store’s success with its hybrid mall concept, exemplified by the success of its Pangyo store and The Hyundai Seoul. The firm now operates four stores with annual sales exceeding KRW 1 trillion, cementing its position as a major department store player.
While lacking a single location with KRW 3 trillion in sales like some competitors, its strong presence in high-income regions, including Gangnam, remains a competitive advantage.
The report emphasized that Hyundai Department Store’s core business remains its department store operations, despite also being involved in duty-free and furniture businesses.
Given that its furniture subsidiary, Zinus, is separately listed, the market largely values Hyundai Department Store based on its retail business. With 16 department stores, including The Hyundai Gwangju set to open in 2027, the company maintains a management philosophy focused on sustainable growth.
Particular attention was given to The Hyundai Seoul, which broke into the top 10 domestic department stores in terms of revenue last year. Analyst Park noted that the store has evolved into a cultural hub, attracting both customers and sellers. The company’s plan to apply The Hyundai Seoul’s success model to other locations through renovations suggests further growth potential.
Additionally, SK Securities pointed out that the key driver of retail stock valuations is demographic trends. Hyundai Department Store’s stock has not maintained a long-term uptrend since 2014, coinciding with a sharp decline in marriage rates. However, with millennials (the “echo boom” generation) now reaching prime marriage age, birth rates are expected to rise over the next two to five years. This demographic shift is seen as a strong positive factor for Hyundai Department Store, which is particularly popular among younger consumers.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
