[Click e-Stock] "Mona Yongpyong, Strong Results Driven by Pre-Sales... Stable Growth in Operating Revenue"

On May 20, DS Investment & Securities analyzed Mona Yongpyong, stating that the company is expected to see steady growth in its performance, driven by sales from property pre-sales.

Mona Yongpyong continued its stable growth trend by posting solid results in the first quarter of this year. First-quarter revenue reached 70.7 billion KRW, up 26.3% year-on-year, while operating profit rose 33.6% to 13.3 billion KRW, resulting in an operating profit margin (OPM) of 18.9%. Cho Daehyung, a researcher at DS Investment & Securities, evaluated, "This strong performance is due to the complete normalization of the operations division combined with revenue from Lusongchae pre-sales."

The main factors behind the improved results are the recovery of the operations division and the increase in pre-sale performance. Researcher Cho explained, "Since the end of the pandemic, strong ski sales during the 24/25 season and the resulting normalization of room sales have led to continued growth." In the first quarter, the room occupancy rate was 60.7%, and the average room selling price was 130,000 KRW, with the operations division alone generating 8.69 billion KRW in operating profit. In addition, as the company diversifies its business into areas such as golf and water parks, the seasonal fluctuation in operating revenue is gradually decreasing.

Mona Yongpyong is expected to see future pre-sales translate into an increase in the number of rooms, providing a stable foundation for operating revenue growth. Researcher Cho emphasized, "Pre-sale performance, which is expected to continue steadily through 2030, will lead to an increase in the number of rooms and serve as the basis for stable operating revenue growth." Accordingly, the company's valuation appeal is also expected to be highlighted each quarter.

This year's annual results are expected to show revenue of 283.9 billion KRW (up 6.0% year-on-year), operating profit of 34.1 billion KRW (up 26.5% year-on-year), and an operating profit margin of 12%. However, the pace of Lusongchae condo pre-sales has been somewhat slow. Researcher Cho mentioned, "Due to domestic and international geopolitical risks, the pace of Lusongchae condo pre-sales has been slower than expected." However, pre-sales have regained momentum in the second quarter, and after completion in June, the company plans to raise the annual pre-sale rate to 78%. This is considered a reasonable target compared to the pre-sale rate of 62.4% at the end of last year.

Researcher Cho explained, "What is more important than the short-term pace of Lusongchae pre-sales is that pre-sale projects will continue steadily through 2030. With follow-up pre-sales such as the Gochang Theme Park and Antinewha and De Locos, pre-sale revenue of about 1.4 trillion KRW is expected to be generated continuously through 2030." He added, "Attention should be paid to Yongpyong Village, which is expected to grow into a large-scale resort town through phased development."

Meanwhile, Mona Yongpyong is also set to begin full-scale development outside the Yongpyong area. Researcher Cho maintained a positive outlook, stating, "Starting with the Gochang integrated theme park in the fourth quarter and expanding into areas outside the Yongpyong complex such as Gangneung, when the diversification of regions generating operating revenue becomes full-scale, a valuation premium will also be possible."