"Lotte Tourism Development pays attention to the peak season of Jeju tourism rather than the Lunar New Year, and the goal is ↑"...DS Investment Securities

*This content was translated by AI.

DS Investment & Securities raised its target stock price from 30,000 won to 33,000 won on the 11th, saying Lotte Tourism Development is expected to have an operating performance from March, when Jeju Island is entering its peak tourism season. The investment opinion remained 'buy'.

Cho Dae-hyung, a researcher at DS Investment & Securities, said, "Casino sales grew year-on-year last month, a relative off-season for Jeju tourism, continuing to grow year-on-year for 12 consecutive months." It is time to raise expectations for growth in line with the peak season for Jeju tourism.

There were expectations for inbound stocks last month, including Chinese New Year's Day, and there are some opinions that Lotte Tourism Development's February performance did not meet these expectations. However, considering that there are many movements in China in the early part of the Lunar New Year, he advised that attention should be paid to March, when it will rebound by entering the peak tourist season on Jeju Island rather than the Lunar New Year. In fact, the number of visitors to Jeju Dream Tower has also been on the rise since the end of last month.

"Considering that bimonthly Bakara Day is held this month, it is highly likely to record net sales of more than 40 billion won from this month," researcher Cho said. "The number of tables is currently estimated to be around 170, and we are also considering increasing it to early 200."

The target stock price was raised to 33,000 won following the increase in estimates.

"As more than 500 rooms are still available for casino customers, profit leverage is expected to continue for the time being," he said. "As a result, the expected net profit next year is expected to increase by 113.2% year-on-year to 79.1 billion won, but the estimate is likely to be raised as additional financial costs can be expected due to refinancing." "The strategy to increase weight is effective at the current stock price level, which has fallen 20 times below the price-to-earnings ratio (PER) due to the recent stock price adjustment," he added.

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*This content was translated by AI.