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Shinsegae food, E-mart shares bolstered by popularity of PBs

2017.04.14 15:53:32 | 2017.04.14 15:55:56
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E-Mart Inc., a discount store unit of South Korea’s Shinsegae Group, is profiting handsomely from cost-effective private brands, boosting its stock as well as shares of sister companies that provide the food supplies to the retailer.

Shares of E-Mart hit a new 52-week high on Thursday. This year alone, its shares soared 28.1 percent on the back of foreign investors’ net buying of 118.7 billion won ($104 million).

Shares of E-Mart closed Friday at 232,500 won, down 0.85 percent or 2,000 won from the previous session.

In the first quarter this year, sales of Emart and its warehouse store business E-Mart Traders are estimated of gaining 5 percent on year thanks to growing popularity of its PBs such as its premium packaged meal brand Peacock and low-cost, high-quality No Brand.

Shinsegae Food, food distributor and manufacturer, saw its share price soar 13 percent from March 14th to Thursday. The food business unit is expected to report the biggest earnings growth in the industry on aggressive investment in PB by E-Mart, Shim Eun-joo, a researcher at Hana Financial Investment said. Its stock finished Friday at 154,000 won, down 0.65 percent or 1,000 won from the previous session.

Shares of Shinsegae International, which supplies its own low cost brands Design United, Daiz and lifestyle brand Jaju, gained 17.2 percent in March. Last year, its shares were down amid jitters about exports to China following Beijing’s trade barriers for Seoul’s plan to deploy US Terminal High Altitude Area Defense (THAAD) in Korea. Bargain-hunting and strong earnings would push up the shares of Shinsegae International, said Lee Hwa-young, an analyst at Hana Financial Investment. They closed Friday at 74,500 won, up 3.19 percent or 2,300 won.

By Chung Woo-sung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]



  • Seoul Thu 21 June 2018


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