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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Hotel Shilla’s recent switch to an operating loss for Q3 has led to a sharp decline in its stock price, with securities firms lowering their target prices amid concerns over the company’s performance. As of 9:10 AM on November 4, Hotel Shilla's stock dropped 6.31% to 40,850 KRW on the Korea Exchange.
In Q3, Hotel Shilla reported sales of 1.0162 trillion KRW and an operating loss of 17 billion KRW. This downturn is attributed to a sluggish Chinese consumer market, increasing discount rates, and higher rental costs for airport locations, all of which have weighed on its profitability.
Reacting to these results, Korea Investment & Securities cut its target price by 15.4% to 55,000 KRW, Hana Securities reduced it by nearly 20% to 49,000 KRW, and Shinhan Investment lowered its target by 20% to 44,000 KRW. These adjustments reflect growing concerns about Hotel Shilla's financial outlook in the face of challenging market conditions.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
