[Click e-Stock] "Lotte Tour Development Sets All-Time High Drop Amount in August"

On September 2, Hanwha Investment & Securities analyzed that Lotte Tour Development is standing out in the casino industry, having achieved record-breaking results last month.

Lotte Tour Development’s casino drop amount last month reached 251.5 billion won, once again setting a new all-time high. The number of visitors also hit a record, reaching 57,042. The number of casino membership members maintained a net monthly increase of around 4,000, surpassing 100,000 for the first time.

However, the hold rate was somewhat sluggish at 15.3%. Regarding this, Park Sooyoung, a researcher at Hanwha Investment & Securities, explained, "Given the characteristics of a venue in its early growth stage, the drop amount and number of visitors are more important indicators than the hold rate or the resulting net revenue."

While a period of stabilization is expected in September, it is forecast that the company will once again reach an all-time high (ATH) in October. The company has already raised the table maximum bet to 100 million won, and is encouraging higher customer drop amounts by mixing tables with minimum bets of 100,000 won and 200,000 won. As of the second quarter, 159 tables were in operation (125 baccarat, 15 poker, 19 others), and by September, the company plans to add 12 baccarat tables and 1 poker table, bringing the total to 166 tables. Park stated, "With the increased capacity and higher betting limits, expectations are rising for the numbers during the National Day holiday in October."

Park named Lotte Tour Development as the top pick in the sector, maintaining a target price of 28,000 won. He said, "Most Chinese VIP guests visiting Korean casinos already have Korean entry visas, so the policy allowing visa-free entry to the Seoul metropolitan area after the end of September will have little impact on Jeju casino venues." He emphasized, "Rather, as Korea-China relations improve and connectivity between Jeju and mainland China flights strengthens, growth in VIP visitor numbers and drop amounts is expected."

Lotte Tour Development’s current market capitalization is around 1.3 trillion won. Park projected, "As we confirm the annual figures for October and next year, reaching 2.4 trillion won should be achievable."