[Click eStock] "Paradise, 'Financial Burden + Low Dividend' Target Price Downgrade"

On the 22nd, Kiwoom Securities lowered the target price of 'Paradise,' a company specializing in hotel, resort, and casino businesses, to 15,000 KRW. The financial burden has increased due to the construction of a new hotel, and there are criticisms that measures to enhance shareholder value relative to profits are insufficient.

Namsoo Lee, a researcher at Kiwoom Securities, stated, "Although a slowdown in Japanese tourist visits has been detected, the increase in Chinese tourists is expected to lead to a stable trend of performance improvement next year." He projected next year's sales and operating profit to increase by 5.0% and 7.2% respectively compared to this year, reaching 1,109.5 billion KRW and 142.3 billion KRW.

However, the researcher pointed out, "As the hotel construction project is being pursued, prolonged cash outflows are inevitable," and added, "The low dividend level compared to profitability is also a factor contributing to the stock's undervaluation."

He explained, "A plan to enhance corporate value (value-up) commensurate with performance stability must be presented to escape the undervaluation zone," and added, "Considering performance growth, the investment opinion is maintained as ‘buy,’ but the target price has been lowered."

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