[Market Feature] GS P&L Rises 8% on Expectations of Improved Second-Half Earnings

GS P&L is showing strong performance in early trading.

As of 9:05 a.m. on August 6, GS P&L was trading at 43,900 won, up 8.93% (3,600 won) from the previous day.

Investor sentiment appears to have improved as expectations grow in the securities industry that GS P&L's earnings momentum will strengthen in the second half of the year.

Nam Seonghyeon, a researcher at IBK Investment & Securities, stated, "The reopening of operations following the completion of the Westin renewal is scheduled for next month," and added, "With the increase in foreign visitors to Korea, there is a high possibility of improved business performance for Nine Tree, especially in Myeongdong, Yongsan, and Dongdaemun." He further commented, "With the arrival of the seasonal peak period, the performance improvement for Grand InterContinental Seoul Parnas is also expected to expand," and predicted, "As the renewal of Westin Seoul Parnas is completed, the average daily room rate (ADR) will rise by more than 50% compared to before the renewal."

In the second quarter, GS P&L recorded sales of 112.1 billion won and operating profit of 11.6 billion won. According to researcher Nam, overall performance improved despite a decline in sales and operating profit due to the renewal of Westin Seoul Parnas (COEX). GS P&L is a hotel and food materials holding company that was spun off from GS Retail, with Parnas Hotel as its main subsidiary (core business entity). The 'InterContinental Seoul COEX', operated by Parnas Hotel, has undergone a complete remodeling and is scheduled to reopen as 'Westin Seoul Parnas' on September 15.