[Click eStock] "Lotte Tourism Development, a Buying Opportunity at Low Prices if Decline Due to China Variables"

[Asia Economy Reporter Jang Hyowon] SK Securities emphasized on the 3rd that attention should be paid to the fact that China has finally opened its borders regarding Lotte Tour Development, and analyzed that if the stock price adjusts due to COVID-19 policy variables from China, it should be seen as a buying opportunity at a low price.

Na Seungdoo, a researcher at SK Securities, stated in a report on the same day, “For the three domestic companies operating foreigner-only casino establishments, sales and stock prices rebounded starting from June last year,” and explained, “This is because, as of June last year, all overseas entrants to Korea were exempted from self-quarantine, and the existing COVID-19 regulation easing policies showed effectiveness.”

Researcher Na Seungdoo analyzed, “While the number of foreigners visiting Korea from places such as Singapore, Hong Kong, Japan, Vietnam, and Taiwan surged by more than 1000% year-on-year on a cumulative basis until November this year, the number of entrants from China to Korea actually decreased by 3%,” and added, “In other words, despite the minimal effect of Chinese tourists, the fact that Korean casino companies’ sales and stock prices rebounded indicates that their fundamentals are strengthening.”

He continued, “Even if entrants from China are regulated due to the spread of COVID-19 variants, it is highly likely to be a short-term regulation and not a factor that would break the current rebound trend.”

He said, “Ultimately, how much foreign tourists directly visiting Jeju Island will increase is important,” and explained, “It is true that the recovery speed of air routes, which have not yet found a balance point between inbound and outbound customers, is slow.”

However, he analyzed, “Flights between Singapore, Thailand, Japan, and Taiwan have resumed, and the Hong Kong route is expected to resume in January,” and added, “Although regulations on entrants from China were temporarily strengthened due to concerns about the spread of COVID-19 variants, more attention should be paid to the fact that China has ultimately opened its borders.”