"Kangwon Land: ‘Better Days Ahead After Hardship’ in 2028...A Long-Term Approach Is Needed"

[Financial News] NH Investment & Securities expects Kangwon Land to achieve earnings growth as its operating environment improves over the next two years, saying a long-term approach is needed. It maintained a “Buy” recommendation but lowered its target price from 22,000 won to 19,000 won.
Lee Hwa-jung, an analyst at NH Investment & Securities, said on the 10th, "Kangwon Land’s third-quarter revenue is expected to reach 372.7 billion won and operating profit 69.4 billion won, down 3% and 5%, respectively, from the same period a year earlier and in line with the market consensus."
Despite an operating suspension caused by hotel room renovations, the impact on the non-casino segment was limited, as occupancy rates and average room rates increased. In the casino segment, visitor numbers and the per-capita drop amount are expected to remain lackluster, but stable earnings should still be achievable.
Lee said, "Earnings growth will be secured by the opening of a second casino venue and the expansion of gaming facilities. Construction of the new venue and hotel renovations are underway through the end of next year in line with the opening of the new facility," adding, "We are focusing on the earnings growth potential from medium- to long-term improvements in the operating environment rather than the short-term earnings gap."

[email protected] Lim Sang-hyeok Reporter