April 19, 2024
Stocks & Bonds
[EQUITIES] ‘Hotel Shilla’s hotel, leisure biz continues to improve’
[THE INVESTOR] Hotel Shilla’s recovering hotels and leisure business will offset the struggling duty-free sector, said Meritz Securities on Sept. 18, suggesting a “trading buy” and 68,000 won (US$60.27) target price.
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Its duty-free stores suffered from the decline in Chinese tourists in the third quarter but revenue from private “shuttle traders” cushioned it, noted analyst Yang Ji-hye, forecasting that profits from better-priced hotel chain Shilla Stay and expanding travel business will bolster the sector to an extent.
In the latter half, it has a number of plans including expanding its downtown duty-free store, Shilla Stay’s overseas expansion and bidding for a duty-free store license in international airports, said the analyst. Meanwhile its initiative in duty-free sales will be further strengthened once the relationship with China improves in the future, she added.
By Hwang You-mee (glamazon@heraldcorp.com)
