[Click eStock] "Paradise, Casino Division Expected to Achieve Record High Performance... Target Price Maintained"

This Year's Performance, Casino Sector Expected to Hit Record High
Relocation to KOSPI Market Could Also Be a Positive Factor
Competition with Newly Opened Inspire Resort Remains a Variable

Kiwoom Securities analyzed on the 19th that Paradise has a bright performance outlook for this year and that its transfer to the KOSPI market is also a positive factor. They maintained a 'Buy' investment rating and a target price of 20,500 KRW. Paradise's closing price on the previous trading day was 13,050 KRW.

Namsoo Lee, a researcher at Kiwoom Securities, stated, "Paradise announced that it will re-pursue a transfer listing to the KOSPI market for the first time in 11 years," adding, "The purpose is to enhance corporate value through the creation of a stable investment environment." He further said, "The outlook for 2024 is also bright with simultaneous growth in sales and operating profit," and added, "If the transfer to the KOSPI market is confirmed, positive factors will include revaluation of valuation compared to peer companies, improvement in supply and demand, and efforts to enhance shareholder value based on the most stable profit flow within the sector."

Paradise's sales revenue for 2023 was 994.2 billion KRW, and operating profit was 145.8 billion KRW. Casino net sales for January and February 2024 were 74.5 billion KRW and 81.3 billion KRW, respectively. The number of VIP visitors was 13,900 and 13,100, maintaining over 13,000 visitors per month since the second half of last year. The researcher said, "In February, which included the Lunar New Year, the number of Chinese VIPs increased by 19% to 3,000 compared to January, but Japanese VIPs decreased by 17% during the same period, resulting in an overall decrease in customer attraction compared to the previous month," adding, "Although there was a slight decrease in VIP visitors compared to January, the drop amount confirmed strong resilience."

Although there is seasonality, the solidity of Japanese VIPs continues to be proven. There is also an increase in Chinese VIP customer attraction. The researcher said, "Since structural expansion of international flights remains, even if the current trend is maintained, the company's casino division is expected to achieve the highest performance since its establishment," adding, "The key to future performance direction is to minimize the initial negative impact of Inspire Resort."

Inspire Resort is a new resort located in Yeongjongdo, Incheon, the same area as Paradise. It held a grand opening ceremony on the 16th to celebrate its official opening. The researcher said, "It is difficult to estimate the impact of Inspire Resort's casino at this early stage, but the Golden Week in May and the peak season in July and August are expected to be the first battlegrounds for full-scale customer attraction competition."