Report

Shinsegae (004170.KS)

- The unfavorable regulatory stance (e.g. limited number of business days for shopping malls and outlets) still holds and will likely have a negative impact on the industry if implemented. - We revise down our target price to KRW235,000 as we cut our 2017 earnings estimates and target EV/EBITDA multiple in light of sluggish sector fundamentals.

Underlying
Shinsegae Co. Ltd

Shinsegae is engaged in the operation of department stores in Seoul, Busan, Incheon, Gyeonggi, Gwangju, Masan, Chungcheong, Uijeongbu, the Republic of Korea (South Korea). Also, Co. has overseas branches in China, Japan and the United States. Co. provides various brand products of "HERMES", "CHANEL", "TIFFANY & Co.", "PRADA", "Cartier", "LOUIS VUITTON", "GUCCI", "BURBERRY", "GIORGIO ARMANI", "BVLGARI" and others.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Jong-ryeol Park

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