April 19, 2024

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[THE INVESTOR] Hotel Shilla will outperform in the first quarter and then remain on a sharp upturn, said Shinhan Investment on April 5, maintaining a “buy” recommendation and raising the target price to 120,000 won (US$112.99) from 110,000 won.

Its operating profit in the first quarter will surge 154.8 percent on-year to 25.5 billion won beating market consensus, said analyst Seong Jun-won.

Its revenue from downtown duty-free stores will be boosted by the rising sales to private shuttle traders and first-quarter revenue from all domestic outlets will hike 23 percent, noted the analyst. 

Operating profit for the whole year will more than double from last year to 152.6 billion won, estimated Seong adjusting the figure from the previous 140.9 billion won. 

This only reflects increasing sales to shuttle traders and has not factored in returning group tourists from China, following which it could reap record earnings, said the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)