[Click eStock] "Lotte Tourist Development, Benefiting from China's Economic Stimulus... Expectation of Peak Season in October Up"

Kiwoom Securities analyzed on the 4th that expectations for Lotte Tour Development's performance in October, the peak season for casinos, are being revised upward.

Namsoo Lee, a researcher at Kiwoom Securities, stated in a report on the same day, "The consolidated sales of the integrated resort in September recorded 35.2 billion KRW, a 58.4% increase compared to the same period last year," and analyzed, "This was due to the benefits from the Chinese Mid-Autumn Festival holiday, Japan's Silver Week, and the resumption of the Jeju-Tokyo route."

Hotel standalone sales also increased by 17.4% year-on-year to 12.6 billion KRW, with an expected room occupancy rate (OCC) of 65%. Last month, the number of foreign visitors to Jeju Island was 1,819,000, a 119% increase compared to the same period last year. Jeju Island is seeing an increase in foreign visitors due to diversification of arrivals from countries including Japan, Taiwan, Hong Kong, and Singapore, in addition to China.

In the casino sector last month, the drop amount was 143.4 billion KRW, a 17.7% increase compared to the same month last year. Visitors also increased by 27% year-on-year to 357,000. The hold rate improved by 8.1 percentage points to 19.8%.

Lee said, "This month is the peak season of the year for casinos due to the Chinese National Day holiday and Japan's Sports Day," and analyzed, "Following the Chinese government's announcement of economic stimulus measures, there has been a surge in demand for travel and casinos in China, which led to a sharp rise in Macau casino stocks."

He added, "With the resumption of the Jeju-Tokyo route, Japanese customers are also increasing, so special effects are expected in October and at the end of the year."