Equity Analysis /
South Korea

KR : E-Mart - Awaiting triggers

    CGS-CIMB
    14 April 2021
    Published byCGS-CIMB

    We forecast E-mart’s offline hypermarket/traders sales growth to be +2%/+8% in FY21F, which we believe is already priced in. Despite online sales growth of +12%/+9% in FY21F/22F, E-mart’s valuation needs a re-rating trigger, either from SSG.com or its US retail business. We upgrade our rating from Reduce to Hold with a new SOP-based TP of W180,000. This note marks the transfer of coverage to Jiwon Lee.