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Jeju Dream Tower / Photo provided by Lotte Tourism Development |
[Alpha Biz= Reporter Kim Sangjin] Hanwha Investment & Securities forecasted on the 8th that Lotte Tourism Development will continue to show stable growth in performance during the second half of this year. The firm maintained a "Buy" rating with a target price of 15,000 won.
The estimated revenue for Lotte Tourism Development in the third quarter is projected to be 135.7 billion won, with an expected operating profit of 18 billion won.
Hanwha Investment & Securities noted, "Since its opening, the upward trend in performance has continued." They added that the hold rate for the third quarter has increased compared to the previous quarter, and hotel occupancy has risen due to the peak season. They also mentioned, "With the National Day holiday in October, expectations are high, and additional flights between China and Jeju will positively impact the company’s casino performance."
However, they cautioned that "due to the ongoing regulations imposed by the Chinese government on Macau casinos and a sluggish economy, the sentiment of high-roller Chinese gamblers remains subdued." They highlighted a slight change in atmosphere as the Chinese government announced economic stimulus measures ahead of the October National Day holiday, expressing hope that if the economy revives, demand for casinos from Chinese VIPs could recover.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
