April 23, 2024

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[THE INVESTOR] Hotel Shilla’s earnings will improve on the back of rising number of Chinese tourists, said eBEST Investment and Securities on Sept. 11, suggesting a “buy” recommendation and 140,000 won (US$123.87) target price. 

While the purchasing power of private shuttle traders will be maintained, inbound tourism from China is beginning to recover, and the retailer’s earnings will gain dramatically. Domestic duty-free stores depend heavily on private traders and although there are concerns that the Chinese government could impose regulations on them, this is not a new issue, said analyst Hwang Hyeon-jun.

In the latter half, competition will heighten as downtown duty-free stores of Shinsegae and Hyundai will open but will be offset by the increase in Chinese tourists, he added.

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