Hotel Shilla stock is showing a downward trend at the beginning of the market on the 28th. The decline seems to be influenced by Hotel Shilla's poor earnings in the second quarter.
As of 9:09 a.m. on that day, Hotel Shilla's stock is trading at 47,650 won, down 7.3% (3,750 won) from the previous trading day.
Earlier, Hotel Shilla disclosed its consolidated earnings for the second quarter of this year on the 25th. The revenue for the second quarter was provisionally recorded at 1.0254 trillion won, with an operating profit of 8.7 billion won. The revenue increased by 2.3% compared to the same period last year, but the operating profit decreased by 68.7% during the same period. The net loss amounted to 880 million won, marking a return to the deficit.
In particular, the duty-free sector has shown poor performance. The duty-free sector recorded an operating loss of 11.3 billion won in the second quarter of this year, marking a return to the deficit compared to the same period last year. The revenue of the hotel & leisure sector increased by 3.2% to 175.2 billion won compared to the same period last year. The operating profit decreased by 2.9% to 20 billion won compared to the same period last year.
Negative opinions also emerged in the securities industry. Park Jong-ryul, a researcher at Heungkuk Securities, noted, "It is concerning that the poor performance of the duty-free shops is becoming prolonged contrary to initial expectations," adding, "It is deemed necessary to actively communicate with investors regarding enhancing corporate value and growth potential at this time." He thus maintained a neutral (Hold) investment opinion.