April 20, 2024

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[THE INVESTOR] Hotel Shilla’s earnings will widely beat market consensus in the first quarter, said Mirae Asset Daewoo on April 19, raising the target price up 7.1 percent to 150,000 won (US$140.81) and suggesting it as a “top pick” in duty-free and cosmetics industry. 

Its revenue in the period will hike 19.2 percent on-year to 1.22 trillion won and operating profit by 177.5 percent to 27.7 billion won, estimated analyst Ham Seung-heui adding that sales from downtown duty-free stores in Korea increased 12.9 percent on-year to record 680 billion won.

Its long-term strategy will bring about meaningful results this year, rising as an influential fragrance and cosmetics retailer at key airports in Asia, explained the analyst. 

In the long term, it will further prevail in Asian duty-free market and strengthen its product portfolio and leverage to negotiate, she added maintaining a “buy” recommendation. 

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