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Paradise City.(photo=paradise provided) |
[Alpha Biz= Reporter Kim Minyoung] KB Securities evaluated Paradise by stating, "Based on its long-standing expertise, the company has succeeded in securing not only Japanese customers but also new market customers, and there are expectations for the recovery of demand from Chinese VIPs with excellent customer acquisition capabilities during the improvement in business conditions." They rated it as 'Buy' with a target price of 21,000 won, up 7.7%.
In their report released on the 16th, KB Securities mentioned, "The competitive intensity with Inspire is at a better level than expected, and the main reason for the upward revision of the target price is the upward adjustment of the estimated operating profit for this year and next year by 25.8% and 37.3%, respectively."
For the first quarter on a consolidated basis, Paradise recorded a 38.2% increase in sales compared to the same period last year, reaching 2.648 trillion won, while operating profit increased by 154.5% to 48.4 billion won, exceeding the market's expected operating profit of 40.2 billion won. With an increase in drop amount driven by Japanese VIPs and mass, along with an improvement in hold rate, casino revenue achieved significant external growth, increasing by 54.9% compared to the same period last year.
KB Securities further forecasted, "The efficient use of comps due to weaker competitive intensity than expected led to operating leverage, which is the background for earning surprise," adding, "Chinese VIP visitors increased by 297.3%, and the leverage effect will be maximized with the improvement in business conditions."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
