IBK Securities analyzed on the 11th that the revision of the distribution law related to the mandatory closure of large supermarkets on holidays will have little impact on Emart's performance. They maintained their investment opinion of 'buy' and a target price of 104,000 won. The closing price of Emart on the previous trading day was 83,100 won.
Nam Seong-hyun, a researcher at IBK Securities, noted, "As the possibility of processing legislation related to the 'mandatory closure of large supermarkets on holidays' increases, Emart's stock price fell sharply on the previous day (10th), but the impact related to this will be small."
The reasons include: ▲ already over 90 stores are conducting weekend closures, ▲ most weekdays off stores entrusted to local governments are outside the metropolitan area, and ▲ the impact related to mandatory closures has continued for more than 13 years, resulting in changes in the shopping patterns of customers.
Researcher Nam predicted, "Generally, the sales difference between weekdays and weekends is just under double," adding, "Considering that there is also a sales difference between the metropolitan area and non-metropolitan areas, the actual impact on the decrease in sales will not be significant."
Additionally, Researcher Nam believes that this week's stock drop could be seen as a strategic buying opportunity.
He explained, "Emart is focusing on profitability and efficient operations through restructuring, and the operational fundamentals for the second quarter (April to June) are also strengthening." He added that a strategy to take advantage of this week's stock drop as a buying opportunity is necessary.