April 19, 2024

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[THE INVESTOR] Hotel Shilla will post strong second-quarter earnings, said Hanwha Investment and Securities on July 17, upgrading the recommendation to a “buy” from a “hold” and raising the target price to 129,000 won (US$114.45) from 94,000 won.

Its revenue in the period will surge 32 percent on-year to 1.12 trillion won and operating profit by 241.5 percent to 58.8 billion won. Although earnings expectations for the company have spiked recently, it will be able to satisfy them thanks to the fast growing duty-free business, said analyst Nam Seong-hyeon.

Growth momentum in the latter half might be slower, but the upward trend will be maintained. Average spending per a foreign customer in the first half has increased and the number of tourists started rising March, he said adding that profits from its duty-free stores at overseas airports will improve as well. 

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