[Click eStock] "Kangwon Land, Positive on Regulatory Easing"

Hana Securities raised the target price for Kangwon Land from 20,000 won to 22,000 won on the 6th, following regulatory easing.

Lee Ki-hoon, a researcher at Hana Securities, explained, "Since adding 68 tables and 400 machines in 2012, regulations had not been eased for over 10 years."

He added, "It is quite positive that regulatory easing has appeared after various efforts under the acting CEO Choi Cheol-gyu," noting, "The planned opening of a 2030 integrated resort in Osaka, located 1 hour and 30 minutes away, has effectively broken the domestic market monopoly, which also contributed to a sense of crisis."

He analyzed, "Unfortunately, there is no change in the short-term earnings outlook," and said, "The casino area expansion is scheduled to be completed in four years." Additionally, he emphasized, "The expansion of tables and machines must be introduced at a new site," and "Both the casino area expansion and table increase are planned for 2028."

The researcher predicted, "If table expansion is implemented next year and the increased capacity directly leads to a rise in drop amount, next year's expected sales would increase by 22% to about 1.8 trillion won." He also stated, "The prerequisite is that Kangwon Land's total sales as of 2024 are only about 1.43 trillion won," adding, "Even assuming no intensification of competition with Osaka, the total sales volume must be expanded beyond the current level."