April 17, 2024
Stocks & Bonds
[EQUITIES] ‘Hotel Shilla’s Q2 operating profit to nosedive’
[THE INVESTOR] Hotel Shilla’s operating profit in the second quarter will plunge more than 90 percent from a year ago, said Mirae Asset Daewoo on July 18.
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Its revenue will fall 6.9 percent on-year to 888.7 billion won (US$789.60 million) and operating profit will plummet 92.5 percent to 1.4 billion won, estimated analyst Ham Seung-heui. This quarter’s earnings fully reflect the sharp decline in tourists from China, but the average increase in prices managed to largely offset the effects, said the analyst.
Non-essential uncertainties surrounding the downtown duty-free store operation license have plagued the industry since 2015, but are clearing. The company has secured duty-free stores at three major airports in Asia, and the time has come to reevaluate its fundamentals, pointed out Ham, suggesting a “buy” recommendation and 75,000-won target price.
By Hwang You-mee (glamazon@heraldcorp.com)
