[Click eStock] "Kangwon Land, Progressing Towards Complete Normalization"

Shinhan Investment Corp. maintained its investment opinion of 'Buy' on Kangwon Land on the 17th but lowered the target price to 28,000 KRW.

Kangwon Land's stock price declined after recording an earnings shock in the fourth quarter of last year. The poor performance was the cause, with a larger decrease in sales and traffic than in expenses. Kangwon Land's drop amount (the amount paid by casino customers to purchase chips) rebounded rapidly after the reopening in April last year. From April to September 2022, the drop amount consistently exceeded the same period in 2019, accelerating recovery; however, all figures in the fourth quarter of last year fell significantly below those of the same period in 2019. As sales decreased, a significant negative leverage effect on profits occurred.

The drop amount from January to March 2023 is estimated to exceed that of the same period in 2019.

Ji In-hae, a researcher at Shinhan Investment Corp., analyzed, "The figures from the fourth quarter of last year are temporary," adding, "It can be interpreted that a large portion of Kangwon Land's overall demand shifted to overseas travel and outbound activities."

Kangwon Land's dividend per share (DPS) for 2022 is 350 KRW. This indicates that the company has abundant net cash and is making efforts to return value to shareholders and manage its stock price.

Researcher Ji analyzed, "Although Kangwon Land is at a disadvantage in the inbound momentum of the leisure industry, it seems to maintain its role as a 'defensive stock' with limited downside."

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