Hotel Shilla could increase its participation in the duty-free … Objective ↑


Hanhwa Investment & Securities Co.,(102,500 -2.38%)"We are expecting a differentiated growth due to an increase in market share.We raise our target price from KRW108,000 to KRW133,000.We keep BUY.

According to a researcher at the brokerage firm, "Shilla Hotel's 1Q11 results meet market expectations." Consolidated sales and operating income increased 13.2% and 34.1% over the previous year to W1.27tr and 593 "It is expected to record 100 million won."

For this reason, southern researchers cited the growth of duty-free shopping, improving profitability in duty-free overseas stores, lowering promotional spending and growing profits at Shilla Stays.

"The sales environment in the duty-free shop was not bad in 4Q08, but profits were slow due to deterioration in profitability caused by some promotional competition. In the first quarter, sales competition will be limited to the Gangnam area," he said. .

Explaining that the share of duty-free stores will expand this year.

According to the researcher, "The preference for the Silla Hotel, which has accumulated economies of scale due to the expansion of the proportion of the legal doll, has been increasing," said department store sales growth in the first quarter.

"We believe that the proportion of corporate Dai-kai increased from about 20% to 40%," Silla said. "We expect the expansion of its market share to be simple, since Hotel Silla has excellent offer and product capability."

Noh Jung Dong, reporter for [email protected]

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