[THE INVESTOR] Hotel Shilla
’s earnings improvement will be accelerated next year as tourism from China recovers, said Shinhan Investment on Nov. 21, raising the target price to 110,000 won (US$100.29) from 93,000 won.
Factoring in the Korea-China summit meeting in December and PyeongChang Winter Olympics next year, estimates of Chinese inbound visitors has been raised to 7.8 million from 7.4 million, said analyst Seong Jun-won. The number of monthly visitors will top 500,000 in the first quarter, he added.
This will boost Hotel Shilla’s operating profit in the duty-free sector next year to 134.6 billion won, up 93.7 percent on-year, and that of the whole company will double to 159.5 billion won, forecast the analyst.
Revenue from duty-free stores in Korea will improve significantly and earnings from hotel and leisure sector will advance as well, said Seong maintaining a “buy” recommendation.
By Hwang You-mee (firstname.lastname@example.org