[Click eStock] "Paradise, Low-Margin New Business and Intensified Competition Increase"

Shinhan Investment Corp. evaluated that Paradise has not reflected any expectations from China, in addition to concerns about intensified competition and the announcement of low-margin new businesses. The investment opinion 'Buy' and the target price of 16,000 KRW were maintained.

Researcher Ji In-hae of Shinhan Investment Corp. stated, "Q3 sales are expected to decrease by 4% year-on-year to 273.7 billion KRW, and operating profit is expected to decline by 38% to 35.3 billion KRW, slightly below expectations on the profit side."

Researcher Ji explained, "The most important topline indicator, drop amount, grew by 6% year-on-year, and among that, the China VIP segment, which the market expects, increased by 24%. However, the overall hold rate fell by 1.9 percentage points year-on-year to 11%, which is the reason for this."

He added, "The multiple fully reflects various concerns surrounding Paradise, and the market capitalization has already factored in the risks, being at a historical low level since 2012."