[Click eStock] "Lotte Gwangwang Gaebal, Continued Earnings Improvement Expected"

IBK Investment & Securities analyzed on the 27th that all business divisions of Lotte Tour Development are expected to show performance growth in the second quarter. No investment opinion or target price was provided.

Lotte Tour Development recorded sales of 106.2 billion KRW and an operating profit of 8.8 billion KRW in the first quarter. Compared to the same period last year, sales increased by 126%, and operating profit turned positive.

Nam Seong-hyun, a researcher at IBK Investment & Securities, said, "We believe the content was as good as the absolute figures in the first quarter," adding, "Casino sales grew significantly, expanding profit contribution, and the main casino customer base showed a clear increase in Chinese visitors." He continued, "Considering depreciation expenses, the cash flow improvement speed is quite fast, and synergy with the hotel division is emerging."

He explained, "The first quarter is traditionally the hotel off-season," but added, "The actual sales of the hotel division in the first quarter were 26 billion KRW, about 9 billion KRW different from the consolidated basis, which is interpreted as a difference due to internal transactions from the jacket, and it is judged to be the effect of having a large-scale business with 1,600 rooms."

IBK Investment & Securities expects the performance improvement trend of Lotte Tour Development to continue in the second quarter. He emphasized, "The performance trend of Lotte Tour Development is expected to continue," adding, "This is because of the increase in foreign visitors due to the expansion of air routes, the rise in tourist attraction due to visa-free entry, growth in the travel business division due to increased domestic outbound travel, and the expected expansion of profit contribution from the hotel business division."