[Click eStock] "HanaTour, Profit Growth Momentum to Continue Until 2026... Target Price Up"

Target Price Raised by 6% Compared to Previous Level

Daishin Securities forecasted on the 13th that Hana Tour's profit growth will continue until 2026 and raised the target stock price from 80,000 KRW to 85,000 KRW. The investment rating was maintained as 'Buy.'

Researcher Sujin Lim of Daishin Securities explained, "With the normalization of airline routes in the first quarter of this year, a recovery trend is expected to fully materialize in the third quarter, and the profit improvement will expand due to the operating leverage effect. Accordingly, we have raised the 2024 earnings per share (EPS) by 6.8% and the target stock price by 6%."

Hana Tour achieved a quarterly record high and an earnings surprise in the first quarter. First-quarter sales increased by 121% year-on-year to 183.3 billion KRW, and operating profit rose by 285% to 21.6 billion KRW. Researcher Lim analyzed, "The proportion of mid-to-high-priced package sales remained high at 28%, and online sales grew to 41%. The operating leverage effect fully materialized due to fixed costs and the effect of charter flight purchases, leading to a record-breaking quarterly performance."

The number of package travelers sent out in the first quarter was 582,000, showing a 61% growth compared to the same period last year, which was steeper than the 45% growth in outbound domestic travelers in the first quarter.

Profit growth is expected to continue until 2026. Researcher Lim stated, "The most notable point is that operating profit growth of over 20% is expected until 2026. Not only the core business growth but also the elimination effect of 8.8 billion KRW in intangible asset amortization related to next-generation IT in 2025 and the reversal of bad debt amortization are anticipated. Additionally, due to the reduction in commission rates following the transition to an online travel agency (OTA) platform, high profit growth will continue until 2026."