[Click eStock] "Lotte Tour Development, Q1 Performance Hits Bottom and Rebounds"

Hana Securities Report

Hana Securities analyzed on the 15th that Lotte Tour Development's performance is expected to rebound from the bottom in the first quarter. No separate investment opinion or target price was presented.

Lee Ki-hoon, a researcher at Hana Securities, explained, "Lotte Tour Development's first-quarter performance was sluggish with sales down 9% year-on-year to 47.1 billion KRW and an operating loss of 33.4 billion KRW, due to variables such as the inability of Chinese aircraft to enter." He added, "From April, international flights, especially routes originating from China, have been increasing."

The researcher analyzed, "The hotel sector may take some time until group tours resume, but the casino is already breaking all-time records. Unless international flight plans are suddenly suspended, operating profit is expected to approach the break-even point (BEP) in the third quarter."

He further stated, "As of March, the resumption of international flights in Jeju Island is at 18% of pre-COVID levels, and performance is expected to improve with the recovery of international flights by the end of the year. The casino's drop amount (the amount customers exchange for chips) is assumed to increase by 2.5 times in the second half compared to the first quarter, and the hotel sector assumes the resumption of group tours from China in the second half, though there may be volatility depending on political variables."

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