공시 • Jun 04
Home plus Reportedly Puts Its Remaining Operations Up for Sale Home plus Co.,LTD. has put its remaining operations up for sale after agreeing to dispose of its supermarket arm, industry sources said on 02 June 2026, courting domestic and foreign buyers as the debt-laden retailer seeks funding ahead of a court-imposed restructuring deadline. According to the sources, Homeplus's sales adviser, PwC Korea, has sent teaser materials to more than 10 domestic and overseas strategic investors as part of a sale process for the retailer's hypermarket and online businesses. Potential buyers include South Korean retail groups LOTTE Corporation (KOSE:A004990), SHINSEGAE Inc. (KOSE:A004170) and CJ Corporation (KOSE:A001040), as well as Chinese e-commerce companies Alibaba Group Holding Limited (NYSE:BABA) and Temu. The push follows Homeplus's May agreement to sell its supermarket unit, Homeplus Express, to Harim Group's NS Shopping for $80 million in cash, with the buyer also assuming part of the division's liabilities. The transaction would ease the retailer's liquidity strain, though additional funding would still be needed to stabilize operations, the company noted. "The sale of Homeplus Express is expected to improve liquidity, but because the proceeds will not be received for another two months, we need additional funding both to maintain operations until the cash inflow arrives and to implement the rehabilitation plan," the company said in a statement. An escalating liquidity crisis compounds the challenge, despite MBK Partners' provision of KRW 100 billion in debtor-in-possession financing in March. The company is currently seeking a KRW 100 billion bridge loan from its largest creditor, Meritz Financial Group, to sustain operations until cash from the Express sale arrives. The talks have deadlocked, however, with Meritz demanding a personal guarantee from MBK Chairman Michael Kim, immediate repayment once the proceeds land and a 6% interest rate. Homeplus must win court approval for its rehabilitation plan by July 3 or face the prospect of liquidation. Even if the court extends the deadline to September, industry observers warn that the risk of liquidation would rise sharply if the company cannot keep its remaining locations open, with dozens of stores already idled. Homeplus temporarily suspended operations at 37 low-performing locations from May through July, out of its 104 hypermarkets total. It has delayed wage payments to employees and struggled to keep shelves stocked as supplier payments have fallen behind. Some believe the better path is not a package sale of the remaining hypermarket and online operations, but carving out valuable real estate assets from operating units to lower the cost of acquiring the core retail business. "Finding a buyer for Homeplus's entire store network will be challenging, so selling prime locations separately could be one way to improve the chances of a deal," one industry official said. New Risk • May 28
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 3.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (3.0x net interest cover). Minor Risk Large one-off items impacting financial results. Major Estimate Revision • May 19
Consensus EPS estimates increase by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from ₩45.2b to ₩46.9b. EPS estimate increased from ₩12,622 to ₩15,077 per share. Net income forecast to grow 138% next year vs 158% growth forecast for Industrials industry in South Korea. Consensus price target of ₩240,000 unchanged from last update. Share price fell 17% to ₩173,200 over the past week. Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩170,100, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Industrials industry in South Korea. Total returns to shareholders of 101% over the past three years. New Risk • May 15
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 96% Dividend yield: 1.5% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks High level of debt (62% net debt to equity). Dividend is not well covered by earnings (96% payout ratio). Large one-off items impacting financial results. Price Target Changed • Apr 07
Price target increased by 7.4% to ₩240,000 Up from ₩223,375, the current price target is an average from 8 analysts. New target price is 31% above last closing price of ₩183,400. Stock is up 51% over the past year. The company is forecast to post earnings per share of ₩12,622 for next year compared to ₩4,275 last year. 
