by Jang Hyowon
Published 28 Feb.2024 13:05(KST)
Sangsangin Securities forecasted on the 28th that Lotte Tour Development will achieve a turnaround with sales of 505.6 billion KRW and an operating profit of 92.5 billion KRW this year. They issued a 'Buy' investment rating and set a target price of 17,000 KRW.
In a report on the same day, Junho Lee, a researcher at Sangsangin Securities, stated, "With the recovery of the Chinese economy and the manifestation of operating leverage effects, performance improvement through these factors will accelerate," adding, "As the remarkable trend of increasing casino visitors continues, it is expected to achieve a turnaround with consolidated sales of 505.6 billion KRW and operating profit of 92.5 billion KRW this year."
In fact, the number of casino visitors at Jeju Dream Tower Casino in January was 26,245, a sharp increase of 147% compared to the previous year, confirming the growth trend of the casino.
Researcher Junho Lee said, "In the case of Lotte Tour Development, the performance of the Grand Hyatt Jeju (hotel) is expected to achieve good results along with the increase in casino customers."
He further suggested an 'Overweight' investment opinion for the entire casino industry, analyzing, "Continuous regulations by the Chinese government on Macau are expected, and the resulting positive spillover effects will coincide with the recovery of the Chinese real estate market, enabling strong performance to be driven from that point onward."
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