Samsung Securities lowered its target price for E-Mart by 10% to ₩108,000 from ₩120,000 while maintaining a "Buy" rating, saying a recovery in the retailer's core discount store business is being offset by weak subsidiary performance. E-Mart reported second-quarter consolidated revenue of ₩6.9 trillion, down 1.8% from a year earlier, and an operating loss of ₩43 billion, reversing from a profit in the same period last year and falling short of market expectations. Same-store sales at its discount stores rose 3.8% year over year for a third straight quarter of growth, helped by recovering consumption and lighter competition after Homeplus closed 22 stores through April and suspended operations at another 37 stores from May. Samsung Securities said weakness at SCK Company, wider losses at Shinsegae Engineering & Construction and continued losses at SSG.com prevented that recovery from feeding through to stronger group results. The broker also cut its forecast for E-Mart's operating profit next year by 12%. For the second half, it sees subsidiary performance and competition as the main variables, although it said the core discount store recovery should continue after July same-store sales growth of 8.6%.