[Special Stock] Hotel Shilla Weakens on Q2 Earnings Slump... New Low

Hotel Shilla is down over 3% due to weak second-quarter earnings. It hit a 52-week low during trading.

As of 9:24 a.m. on the 29th, Hotel Shilla is trading at 48,950 KRW, down 1,650 KRW (3.26%) from the previous close. During the session, it fell to 48,150 KRW, marking a new 52-week low.

On the 26th, Hotel Shilla announced that its operating profit for the second quarter of this year was 27.6 billion KRW, a 58.9% decrease compared to the same period last year. Revenue increased by 15.7% to 1.0027 trillion KRW, while net profit dropped 62.1% to 27.4 billion KRW.

Researcher Jo Sang-hoon from Shinhan Investment Corp. stated, "Hotel Shilla's second-quarter earnings fell 16% short of consensus (the average forecast by securities firms)." He analyzed, "The weak performance continued due to the downturn in Chinese consumer spending, the burden of overseas airport store rents, and the high base from the previous year." He added, "While there is no doubt about the direction of industry recovery, the pace is slow, leading us to revise downward the company's earnings estimates and lower the target stock price by 5% to 63,000 KRW."