[Click eStock] "Lotte Tour Development, Solo Surprise March"

Daishin Securities forecasted on the 18th that Lotte Tour Development's performance growth will accelerate next year due to the operating leverage effect.

Im Su-jin, a researcher at Daishin Securities, stated in a report on the same day, "In the case of casino companies, the initial operating profit margin is low due to high fixed costs, but the operating profit margin sharply increased to 16% in the third quarter of this year from an operating loss last year," and added, "Next year, the effect of the increased number of international flights, which has significantly risen since the second half of this year, will be seen from the first half."

She continued, "Looking at China's stimulus measures, a recovery centered on service demand is expected," and predicted, "Since the proportion of Chinese customers is high, the number of casino visitors and drop amount (the amount exchanged by customers for chips) will continue to grow due to the visa-free entry system."

Regarding the stock price, she analyzed, "Despite the continued performance exceeding expectations, the stock price remains sluggish," attributing this to "the ongoing recession in the casino industry excluding this company and growing concerns about refinancing scheduled for the end of November." She added, "However, successful refinancing is expected due to this year's achievement of profitability and the trend of interest rate cuts," and concluded, "We consider this a buying opportunity at the bottom and maintain our top pick rating within the industry."