[Click eStock] "Hana Tour, Profit and Dividend Appeal Despite High Exchange Rate Burden"

Shinhan Investment Corp. maintained a buy rating and a target price of 77,000 KRW on Hana Tour on the 9th, stating, "Although the high exchange rate is a burden, considering profits and dividends, it is the most attractive travel stock."

On the same day, Ji In-hae, a researcher at Shinhan Investment Corp., said, "Last year's fourth-quarter results showed sales of 169.8 billion KRW and operating profit of 13.2 billion KRW, increasing by 42% and 16% respectively compared to the same period last year, meeting the lowered expectations."

Package (PKG) demand grew by 31%, but the average selling price (ASP) slightly missed at 970,000 KRW. Researcher Ji explained, "This was because demand was concentrated on relatively lower-priced short-distance trips," adding, "Regarding cost issues, small bonuses are expected thanks to strong performance, but the management's cost control stance will continue."

He stated, "Ahead of the winter peak season, investment sentiment worsened due to martial law, high exchange rates, and the unfortunate Jeju Air accident. There was a chain reaction of cancellations for Muan Airport, Jeju Air, and overall low-cost carriers (LCC) products, causing a slowdown in reservation rates," but analyzed, "The impact on performance from Muan Airport products is limited, accounting for only 1-2% based on entrusted funds."

Market restructuring and the attractiveness of profits and dividends are noteworthy factors. Researcher Ji said, "There is an expanding concentration of demand on large-cap stocks due to smooth refund procedures and a diverse product portfolio. Additionally, profit improvement through cost reduction and differentiated dividend appeal remain strong investment points," adding, "The only risk is the burden of the high exchange rate, but considering the differentiated profit and dividend points, we maintain it as a preferred stock within the sector."