Photo = Hankyung DB
Shinsegae International, which imports and produces clothing and cosmetics, rose on the news that Shinsegae and Naver exchanged 250 billion won worth of stocks. Shinsegae International has so far relied on offline stores such as duty-free shops and department stores, but it is an analysis that the use of Naver’s online distribution network through this share exchange could greatly expand its sales channels.
On the 17th, Shinsegae International closed the transaction at 295,500 won, an increase of 2.44%. The price rebounded by about 40% after falling to the 140,000 won range in June due to the sharp decrease in sales through duty-free stores and department stores due to Corona 19.
The securities industry predicted that Shinsegae International will benefit most directly among the companies involved in the exchange of shares. Hanuri Meritz Securities researcher said, “It is the only company that provides fashion and cosmetic brand content among affiliates. Until now, we have relied on Shinsegae Group’s sales network, Sec.com and SI Village, but online sales channels can be added through Naver. There is” he explained. Shinsegae International imports and distributes foreign luxury fashion and cosmetic brands such as Armani, Celine, and Maison Margiela.
Through this exchange, Naver purchased a 2.96% stake in E-Mart owned by Shinsegae Group for 150 billion won and a 6.85% stake in Shinsegae International for 100 billion won. Shinsegae Group’s E-Mart and Shinsegae International will hold 0.24% and 0.16% stakes in Naver, respectively.
Lee Ji-young, a researcher at NH Investment & Securities, predicted, “Since Shinsegae International is the smallest among its affiliates in the size of the company, even a small amount of benefits can greatly increase the overall performance of the company.” Last year, E-Mart recorded 2372 billion won and Naver 1,215.3 billion won, while Shinsegae International recorded 33.8 billion won.
However, on that day, Naver and E-Mart fell 0.52% and 2.20%, respectively. This is because the exchange of shares to form the anti-coupang solidarity was not an unexpected issue. “It was known that E-Mart and Naver were already participating in the stock exchange, and the stock price had already reflected the good news,” Lee explained. “Since the participation of Shinsegae International was unexpected news, the stock price jumped on this day.”
In the long run, it is expected that Naver’s technology and 6,000 stores of Shinsegae Group will combine to create synergy. It is possible to cooperate with Naver Pay to expand membership to Shinsegae stores or to deliver fast delivery using the distribution center of E-Mart stores. Myung-ju Kim, a researcher at Mirae Asset Daewoo, predicted, “It will have the most positive impact on E-Mart, which needs to integrate online and offline infrastructure.
Reporter Choi Ye-rin [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution