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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Yuanta Securities has forecasted that Hotel Shilla will aim for profit growth in the second half of the year by implementing austerity measures. The target price has been adjusted from 80,000 won to 62,000 won, taking into account historical price-to-earnings ratios, but the investment rating remains 'Buy'.
According to Yuanta Securities on the 30th, Hotel Shilla's operating profit for Q2 was 27.6 billion won, a 58.9% decrease from the previous year, falling 16% below the market expectation of 23.9 billion won. Sales were 1.027 trillion won, marking a 15.7% increase year-on-year.
Yuanta Securities noted that despite increased sales in the duty-free and retail sectors due to overseas stores, operating profit declined due to rising rental costs. Additionally, fixed costs such as maintenance increased in the hotel and leisure sectors.
For the second half of the year, Hotel Shilla plans to focus on cost-cutting and improving internal efficiency. The company will reduce inefficient promotions and discounts, closely analyze budget, demand, inventory, and turnover cycles for order management.
Yuanta Securities expects Hotel Shilla to strengthen its emergency management system to cut costs and aim to reduce financial costs and secure liquidity through convertible bond issuance. They also anticipate an increase in demand in the hotel and leisure sectors during the peak vacation season.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
