May 11, 2024

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[THE INVESTOR] Hotel Shilla’s third-quarter earnings will be strong, said Kyobo Securities on Sept. 3, suggesting a “buy” recommendation and 140,000 won (US$125.44) target price. 

Its operating profit in the period will surge 133 percent on-year to 71 billion won, boosted by solid growth of revenue from private shuttle traders combined with 39 percent hike in duty-free sales in time for Chinese Thanksgiving. In addition to being the conventional high season for hotels, rising occupancy rate will lift revenue in the sector up 9 percent from the same period last year, said analyst Yoo Min-seon. 

Hotel Shilla’s price-earnings ratio is at 20.5 times and considering that its growth and profit improvement will begin in earnest, investors should actively pick up more shares, she added.

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