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(Photo = Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] KB Securities lowered its annual operating profit estimate by 8.5% this year, citing slowing sales growth at existing convenience store stores in BGF Retail.
KB Securities lowered BGF Retail's consolidated operating profit estimate for this year to 264.5 billion won, 8.5% less than the previous 289.2 billion won. It reflected the sluggish sales at existing convenience stores in the first quarter of this year due to the sluggish consumption economy, competition with other channels such as quick commerce and supermarkets, and the temperature in March, which was lower than before.
KB Securities expects BGF Retail's consolidated operating profit for the first quarter of this year to be 33.7 billion won, 9% less than the same period last year. The figure is 12 percent lower than the average estimate of 37.8 billion won for local securities firms compiled by financial information provider FnGuide. He also lowered BGF Retail's target stock price by 15% from 200,000 won to 170,000 won.
"We have adjusted the annual sales growth rate and operating profit ratio of existing stores this year from 1.6%, 3.2% to 1.0% and 2.9%," KB Securities said. "In order for the stock price of BGF Retail to rebound, we need to address concerns over possible market saturation."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
