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Jeju Dream Tower. (Photo=Lotte Tourism Development) |
[Alpha Biz= Reporter Kim Minyoung] Daishin Securities believes Lotte Tourism Development is likely to outperform market expectations this year, and began its analysis with a target of 14,000 won and an investment opinion of "buy." Considering the closing price of the previous day (KRW 9,330), it is estimated that there is a 50.05% increase.
Lim Soo-jin, a researcher at Daishin Securities, explained on the 17th, "The most important factors in Lotte Tourism Development's stock price are two main factors: whether to sustain growth and improve financial costs."
"From a conservative point of view, the hold rate (that is, the ratio of the amount lost by customers in the game) is falling to the previous level and that the current level of financial costs will be maintained," Daishin Securities said. "If we maintain a high hold rate like in the first quarter, we expect sales growth that greatly exceeds market expectations."
"In the case of financial costs, refinancing scheduled for November this year is important, which is likely to improve," Daishin Securities said. "The financial structure has improved due to the revaluation of assets in the first quarter, and the company is expected to achieve an operating profit surplus and cut interest rates at the end of the year." "We plan to raise our earnings outlook and target stock prices immediately after confirming the improvement," he stressed.
Daishin Securities then predicted Lotte Tourism Development's consolidated sales this year to be 463 billion won, up 48 percent from last year, and its operating profit to 35.1 billion won, which turned into a surplus.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
