[Click eStock] "Hotel Shilla, Recovery of Chinese Visitors to Korea... Steady Sales Growth"

Yuanta Securities analyzed on the 30th that Hotel Shilla's sales growth will continue as the number of Chinese visitors to Korea is recovering to pre-COVID-19 levels.

Researcher Lee Seung-eun of Yuanta Securities stated in the report, "Chinese visitors to Korea have recovered to 78% compared to 2019, but the proportion of package tours among those aged 40 and above is decreasing due to the younger MZ generation's preference for individual travel," adding, "Since the average spending per customer of the MZ generation is lower than that of package tourists, sales growth is expected to recover gradually."

Researcher Lee also explained, "In the second half of the year, the focus will be on solid management, concentrating on tightening and improving internal efficiency," and "To improve the profit structure, inefficient promotions or discount rates will be reduced, and ordering management will be conducted by closely analyzing budgets, demand, inventory, and turnover cycles."

He further stated, "Through strengthening the emergency management system, cost reduction will be pursued, and by issuing convertible bonds, the goal is to reduce financial costs and secure liquidity," and "For overseas branches, negotiations with airport corporations will continue to reduce rental burdens."

He forecasted, "In the hotel leisure sector, demand is expected to increase during the peak vacation season in the second half of the year," adding, "While additional improvements may be limited due to high occupancy rates in Jeju and Stay, steady contributions are expected from Stay with the addition of new outlets in the second half."