[Infostock Daily= Reporter An Hoe Hyun] KB Securities said on the 21st, Hotel Shilla's duty-free shop sales growth and sales at the city are recovering rapidly. The investment opinion maintained 'BUY' and raised the target stock price by 20% to 98,000 won.
KB Securities said it raised its estimate of Hotel Shilla's earnings and reflected the rise in the EV/EBTIDA multiple applied to the hotel sector. KB Securities raised its sales estimates for 2020, 2021 and 2022 by 10%, 9% and 1%, respectively, while operating profit estimates rose by 5%, 9% and 3%, respectively. Considering that the recovery in sales in China's bundles is faster than expected, it has raised its sales estimates for duty-free shops in the city, but explained that the 'COVID-19' has been prolonged, lowering its domestic and overseas airport duty-free shops, hotels and leisure sales estimates.
Hotel Shilla's duty-free shop sales are growing compared to the previous quarter, and sales at downtown stores are recovering rapidly based on solid cosmetics demand in China. There is concern about the high growth of Hainan duty-free shops in China, but the demand for bundles in Korean duty-free shops is not shaken.
Hotel Shilla's consolidated third-quarter earnings are expected to be 824.8 billion won in sales and 32.8 billion won in operating loss. Compared to consensus, its sales and operating profit are expected to be more than 9% and 4.6 billion won.
Reporter An Hoe Hyun ahh@infostock.co.kr
