Hanwha Investment & Securities maintained its target stock price of 100,000 won and investment opinion "buy" on Hana Tour, saying its third-quarter earnings met expectations.
Hanwha Investment & Securities analyzed, "Sales and operating profit in the third quarter were close to expectations with 11 billion won and operating loss -26.5 billion won, respectively.". "The operating loss expanded compared to the previous quarter because of labor costs due to changes in the number of employees," Hanwha Investment & Securities said.
"The number of employees going to work at the headquarters increased from an average of 300 in the first half of the year to 600 in the third quarter, and we will gradually increase the attendance rate from October and return to all 1,200 in the fourth quarter.". Hanwha Investment & Securities also added, "Operating losses in the fourth quarter are likely to increase slightly due to increased marketing in addition to increased labor costs.".
"With the demand for overseas travel just on the verge of recovery, the market restructuring centered on large companies is still positive as there will be a limited number of travel agencies that can receive the smooth supply of air tickets and hotels for the surging demand," Hanwha Investment & Securities added.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
