Hyundai Dept. Store(069960): Solid 2Q06 results
- 2Q comment
- Revising down TP to KRW92,000 but reiterating BUY recommendation
> 2Q06 sales, operating profit and recurring profit came in at KRW189.9bn(+3.2% y/y), KRW55.0bn (+5.6% y/y) and KRW73.1bn(+45.4%).
> 2Q06 OP increased 5.6% y/y to KRW55.0bn despite increased labor costs thanks to improved gross profit margin and reduced advertisement costs.
> RP expanded 45.4% versus 2Q05 in which the company saw loss of KRW34.6bn on disposal of tangible assets.
> OP and RP margins rose 0.7%p y/y and 11.2%p y/y respectively to 29.0% and 38.5%.
> Revise up sales estimate by 3.1% as we expect sales of high-end items and wedding-related items to remain robust until end-year.
> Our new FY06 sales, OP and RP estimates are KRW784.3(+3.4% y/y), KRW167.8bn(+2.6% y/y) and KRW227.6bn (+14.7% y/y).
> Revise down our TP to KRW92,000(PER 12x on 12-month forward EPS KRW7,660) from KRW117,000. |
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