Hana Securities analyzed on the 19th that Lotte Tour Development would benefit from improved relations between Korea and China. The target stock price is 19,000 won, and the investment opinion is "buy."
Lee Gi-hoon, a researcher at Hana Securities, said, "Monthly casino revenue exceeded 40 billion won, which indicates a growth rate that can lead to profitability based on net income in 2026," adding, "The combined casino revenue for April and May reached 74 billion won, prompting us to raise the second-quarter operating profit forecast by 43% to 29.9 billion won and adjust the annual operating profit forecast upwards by 37% to 96 billion won."
Hana Securities analyzed that Lotte Tour Development has been working to expand its ordinary customer and non-casino revenue in line with the Chinese government's anti-corruption policies and strengthened regulations, and has expanded its resort complex for this purpose. The researcher noted, "The competitiveness of the resort complex lies in the number of rooms," explaining that "Supply creates demand, and considering that hotel rooms equate to capacity, Lotte Tour Development, with 1,600 hotel rooms, has high competitiveness."
He continued, "As of the first quarter, the number of rooms used for casino operations is only about 30% (approximately 500 rooms)," adding, "It is highly likely that this will quickly rise to at least 50%, leading to a positive cycle where the per capita drop amount (the amount that casino customers exchange for chips) also increases."