[Click eStock] "Lotte Gwangwang Gaebal, Casino Complex Resort Full-Scale Growth"

[Asia Economy Reporter Ji Yeon-jin] Kiwoom Securities forecasts that Lotte Tour Development will achieve the highest performance improvement in the 'post-COVID-19' era and set the target stock price at 26,000 KRW.

The Jeju Dream Tower Resort operated by Lotte Tour Development houses a casino and Asia's largest Grand Hyatt Hotel. This year, the company's sales are expected to reach 374.6 billion KRW, with an operating profit of 51.1 billion KRW. Hotel division sales are projected at 250 billion KRW, and casino sales at 99 billion KRW, reflecting the effects of the casino complex resort opening. Considering Jeju Island's position as the largest domestic resort area, it is expected to achieve stable performance from the early stages.

Jeju Dream Tower, which began construction in 2016 and was completed in 2020, has applied for casino expansion and relocation. After hearing opinions from the Jeju Provincial Council and completing the final approval for casino expansion and relocation, it is expected to open grandly and grow into an Asian landmark casino complex resort. Given the limited entry into the domestic foreigner-only casino market and the growth potential of the non-casino sector centered on the hotel from the early stages, as well as the casino sector after the resumption of global travel, mid- to long-term performance improvement is considered possible. Analyst Namsoo Lee of Kiwoom Securities stated, "Although the operation of the casino may fluctuate depending on Jeju Island's permits, which is a risk factor, the hotel division's stability is excellent, and the expected influx of local VIPs after opening is valid, so we judge that there is no fundamental damage."

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