[Click eStock] "Kangwon Land, Reopening Optimism Rises at Omicron Peak"

[Asia Economy Reporter Kwon Jae-hee] KB Securities maintained its 'Buy' rating on Kangwon Land on the 21st and set a target price of 33,000 KRW.

This is based on the assessment that traffic is increasing as operating hours have been extended from the previous 12 hours (10 AM to 10 PM) to 13 hours (10 AM to 11 PM) due to the easing of social distancing measures.

Before the spread of Omicron, Kangwon Land's operating hours were from 10 AM to 6 AM the next day, totaling 20 hours. However, in December, due to the highly transmissible Omicron variant, operating hours were reduced to 12 hours, and from March 5th, reflecting the eased social distancing, Kangwon Land currently operates for 13 hours. Experts predict that if the Omicron wave peaks and subsides next week as expected, the operating hour restrictions will be lifted.

Kangwon Land currently limits simultaneous occupancy to 3,000 people, whereas before COVID-19, this number was around 6,000. Kangwon Land restricts simultaneous occupancy through an ARS pre-reservation system, and if social distancing is fully eased and the daily quarantine system is adopted, the occupancy limit will also be removed.

Ryu Eun-ae, a researcher at KB Securities, stated, "Kangwon Land has implemented measures such as spaced seating, installation of partitions, increased table spacing, and prohibition of side betting to prevent close contact among customers, but as social distancing eases, these measures will also be relaxed," adding, "Ultimately, side betting is expected to resume."

Currently, South Korea's COVID-19 vaccination rate (completion of the second dose) is 86.6%, and the booster shot rate is 62.8%.

Researcher Ryu said, "If the Omicron wave passes its peak and the daily quarantine system is adopted, Kangwon Land's traffic will recover rapidly," noting, "In fact, Kangwon Land's average daily visitors have gradually increased from 1,938 in Q1 2021 to 2,191 in Q2, 2,824 in Q3, 3,297 in Q4, and currently around 4,000."

This content was produced with the assistance of AI translation services.