[Click eStock] Paradise, Casino Performance Trending Upward... Target Price Raised to 24,000 Won+

On the 10th, Kiwoom Securities raised the target price for Paradise to 24,000 KRW, anticipating growth in casino performance through the second half of the year. The investment rating was maintained at 'Buy.'

Namsoo Lee, a researcher at Kiwoom Securities, explained, "Reflecting strong April results and structural traffic growth due to the expansion of international flights, we have raised our 2024 operating profit estimate by 14%. Accordingly, we maintain the 'Buy' rating and adjust the target price to 24,000 KRW."

He added, "With the expansion of international flights, VIP traffic is steadily increasing, and casino performance is expected to show a stable upward trend through the second half of the year. Although there may be a gap in hotel demand due to domestic travelers going abroad, this is likely to be offset by foreign inbound visitors," he analyzed.

Paradise recorded its highest first-quarter performance with sales of 264.8 billion KRW and operating profit of 48.4 billion KRW.

Researcher Namsoo Lee stated, "From January to April, the monthly average number of Chinese VIP visitors was 26,000, with a drop amount of 100.5 billion KRW. Although it was not as high as expected, February showed the best performance during this period due to the Lunar New Year effect."

April casino sales reached 84.1 billion KRW, marking the second-best performance since 2023, thanks to strong results from Japanese and other VIPs, who have strengths among Chinese VIPs.

He viewed that Paradise is holding its ground by securing existing customers amid competition with Inspire Resort. Researcher Namsoo Lee said, "We set the intensity of competition with Inspire Resort from the second quarter onward lower than before and expect improvements in sales and marketing cost efficiency accordingly."