[Click eStock] "Lotte Tour Development Expected to Sustain Stock Rally Next Year... Target Price Raised"

Target Price Raised from 23,000 Won to 27,000 Won

Yuanta Securities announced on December 8 that it expects the stock price rally for Lotte Tour Development to continue into next year, raising its target price from 23,000 won to 27,000 won. The investment rating remains 'Buy'.

Lee Hwanwook, a researcher at Yuanta Securities, stated, "The upward revision of the target price is based on higher earnings estimates for next year." He explained, "With continued improvements in Korea-China relations and ongoing benefits from Korea-Japan travel, we expect a robust recovery in the number of incoming tourists next year. The rising brand awareness of Dream Tower is also facilitating an increase in market share, which should lead to stronger earnings growth compared to previous forecasts." He added, "There is a favorable outlook for mid- to long-term earnings growth across all aspects, including the potential to open additional baccarat tables, the availability of 1,600 hotel rooms, and the ongoing trend of higher minimum betting amounts."

Lotte Tour Development achieved its highest-ever quarterly results in the third quarter of this year, with revenue rising 34.1% year-on-year to 186.6 billion won and operating profit surging 138.4% to 52.9 billion won. Lee analyzed, "The ongoing recovery in the number of Chinese visitors, combined with a solid increase in market share in the Jeju casino sector, has led to clear top-line growth and operating leverage effects."

Strong results are also expected in the fourth quarter. Lee commented, "The year-on-year growth rates in visitor numbers for October and November were 55.9% and 41.3%, respectively, consistently exceeding market expectations. Therefore, there are unlikely to be significant variables affecting fourth-quarter performance."

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