KB Securities projected on the 16th that PARADISE would benefit if the visa-free entry policy for groups of Chinese tourists is expanded. It maintained its investment opinion of 'buy' and raised its target price from the previous 20,000 won to 26,000 won, an increase of 30%. The closing price of PARADISE the previous day was 18,940 won.
The government is pursuing a policy to expand visa-free entry for groups of Chinese tourists nationwide and to extend the deadline indefinitely. KB Securities estimated that this policy would be legislated and implemented around September.
Lee Sun-hwa, a researcher at KB Securities, noted, 'If visa-free entry for groups of Chinese tourists is expanded nationwide, the regions that will benefit the most are Incheon and the capital region,' adding, 'PARADISE has a geographical advantage with PARADISE City, which is located just 10 minutes from Incheon Airport.'
As of last month, Incheon Airport operates 3,492 flights from China. This is significantly more frequent than Jeju Airport's 612 flights and Gimpo Airport's 240 flights.
The researcher stated, 'PARADISE has both a hotel and casino at PARADISE City, which is a 10-minute drive from Incheon Airport, giving it a geographical advantage for game players who value proximity to the airport.' She explained, 'Since foreigner-only casinos have no regulations on the number of operational tables, they can increase operating tables or raise betting limits at any time, allowing them to flexibly respond to increasing demand.'
In the casino industry, the total gaming revenue (GGR) in Macau reached 3.6 trillion won in June, marking the highest level since the COVID-19 pandemic. This indicates a clear recovery in the market.
The researcher explained, 'As the demand for Chinese tourists in Macau recovers, a spillover effect is expected for Korea's foreigner-only casinos.'