Kiwoom Securities predicted that Hotel Shilla is in the process of improving its cost structure and recovering demand for duty-free shops at the same time, and that the recovery of sales and profits will accelerate in the resumption of overseas trips. In response, the securities firm maintained its investment opinion of 'Buy' on Hotel Shilla and raised the target price from 100,000 won to 120,000 won.
In the first quarter, Hotel Shilla's sales fell 23% year-on-year to 727.1 billion won, while operating profit during the same period turned to a surplus of 26.6 billion won.
"Hotel Shilla made an aggressive, structural change last year after suffering from the COVID-19. It succeeded in turning into a profit in the first quarter of this year due to the effect of reducing fixed costs," the securities firm explained.
It is also positive that the burden of rent at Incheon International Airport has decreased. the securities firm said, "Since the level of rent at Incheon International Airport has been lower than usual, the momentum for performance improvement is expected to be very large in the first half of the resumption of overseas travel."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
