[Click eStock] "Modetour, Profitability Improvement Due to COVID-19 Easing"

Ebest Investment & Securities Report

[Asia Economy Reporter Kwangho Lee] Ebest Investment & Securities analyzed on the 4th that Modetour recorded a loss in 2022 due to COVID-19, but with the recovery of the number of inbound and outbound travelers following the easing of COVID-19 and the normalization of international flight supply, it will return to normal operations in 2023. The investment opinion was maintained as Buy, and the target price was raised to 25,000 KRW.

Analyst Jina An of Ebest Investment & Securities explained, “Since November 2022, the number of outbound travelers has been steadily increasing,” adding, “In particular, the number of outbound travelers on overseas packages in December was 42,765, an increase of +6,992% compared to the same month last year, with Southeast Asia accounting for more than 50% of the outbound travelers by region, the highest proportion.” She continued, “With the visa-free entry to Japan and the weak yen effect, the number of outbound travelers surged from November, ranking second with a 25% share.”

Analyst An stated, “The normalization of Modetour’s outbound travelers is expected in 2023,” and “The Southeast Asia and Japan regions, which have a high proportion of outbound travelers, have visibly recovered to pre-COVID-19 levels.”

She added, “Excluding China, international flight supply has recovered up to 76%,” and “Japanese flights have normalized to about 87%, and including China for regular flights, international flight supply is estimated at 57%, and considering non-scheduled flights, about 60%.”

She continued, “Before COVID-19, the proportion of outbound travelers by region was about 40-50% for Southeast Asia, 20% for Japan, and 10-15% for China,” and forecasted, “Profitability will improve due to the normalization of outbound travelers in key regions, liquidation of subsidiaries that continue to incur losses, and ongoing cost reductions mainly in labor costs.”

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