“We are the real beneficiaries of endemic”… Distribution stocks such as BGF Retail, Lotte Shopping, ‘Kutt’ in bear market
The domestic stock market is also struggling due to a series of bad news such as global austerity and the collapse of the virtual currency Terra. The KOSPI index once collapsed below the 2550 line, and ‘new low’ stocks are also appearing one after another. In such a bear market, stocks that are showing an upward movement in the stock market are attracting attention. They are ‘distributors’ such as convenience stores and marts.
Retail stocks are seeing the light of a downtrend. A representative company is BGF Retail, which operates CU convenience stores. The stock price of BGF Retail closed on May 13 at 196,500 won. This is an increase of nearly 40% compared to the beginning of the year.
Lotte Shopping, which operates Lotte Department Store, is also on the rise. The stock price of Lotte Shopping is 101,500 won as of the closing price on May 13. It rose more than 4% in one day alone. This is an increase of more than 15% compared to the beginning of the year. Shinsegae, which operates Shinsegae Department Store, also closed the day at 255,000 won, up from the beginning of the year.
Their upward trend appeared as more and more people visited offline stores. It has fully benefited from Endemic and Re-opening. The recently announced first quarter results were also positive. BGF Retail’s operating profit in the first quarter stood at 37.8 billion won, up 75% from the same period last year. Lotte Shopping also posted an operating profit of 68.7 billion won, up 11.2 percent from the same period last year. Shinsegae recorded an operating profit of 163.6 billion won in the first quarter, a 23.4% increase from the previous year and a record high as of the first quarter.
However, not all distributors laughed. GS Retail’s operating profit in the first quarter of this year was 27.3 billion won, down 27.2% from the same period last year. The stock isn’t good either. BGF Retail’s competitor, GS Retail, hovers around 26,000 won, down from the beginning of the year. It is analyzed that the fact that convenience stores have diverse business portfolios such as online shopping malls, unlike BGF Retail, which is their main business, acted as a negative factor. E-Mart, which is strengthening its online business, is maintaining its share price of around 120,000 won, down 20% from the beginning of this year.
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