[Market Focus] Casino Stocks Rise on Expectations of Strong Earnings for Second Consecutive Quarter

Shares of domestic casino-related companies are on the rise, driven by expectations of strong earnings for two consecutive quarters, partly due to an increase in Chinese tourists.

As of 1:55 p.m. on July 4, Kangwon Land was trading at 19,790 won, up 760 won (3.99%) from the previous trading day. At the same time, Paradise (up 3.47%) and Lotte Tour Development (up 2.16%) were also showing gains.

On this day, Hana Securities raised its earnings outlook for casino-related businesses and adjusted its target prices for each stock upward. Lee Kihun, a researcher at Hana Securities, said, "In the second quarter, following the first quarter, both Paradise and Lotte Tour Development are expected to exceed the market consensus by about 20%. In addition, the visa-free policy period for Chinese group tourists is being extended."

He added, "Reflecting the upward earnings revisions, we are raising the target prices for Paradise, GKL, and Lotte Tour Development to 20,000 won (+33%), 19,000 won (+27%), and 21,000 won (+11%), respectively, and newly designating Lotte Tour Development as a top pick along with Paradise. Kangwon Land's target price is also being raised to 23,000 won (+5%) to reflect its increased dividend appeal due to falling interest rates."