Hyundai Motor Securities analyzed that, as of the 21st, since group visa-free entry for Chinese tourists has temporarily become possible, the number of Chinese entrants will rise toward a historical peak. They upgraded their investment opinion to 'buy' and proposed a target stock price raised by 84% to 24,000 won. The previous closing price of Paradise was 20,750 won.
According to Hyundai Motor Securities, the number of foreign entrants in the second quarter increased by 15% compared to the same period last year, reaching 4.96 million. This is also a figure that has broken the previous record.
Researcher Kim Hyun-yong of Hyundai Motor Securities said, "Among them, the number of Chinese entrants has indeed increased significantly by 17% compared to the same period last year, at 1.4 million; however, this is only 55% of the historical peak (2.52 million in the third quarter of 2016). He noted that, beginning on the 29th of next month until June next year, the temporary visa-free entry for Chinese groups is set to increase the number of Chinese entrants toward a historical peak."
Paradise's drop amount in July (money exchanged for chips) increased by 7.7% year-on-year to 583.9 billion won. Revenue recorded a year-on-year increase of 22.9%, reaching 75.7 billion won.
Researcher Kim stated, "The drop amount in the first half of the year only increased by 2.8%, which is understood to have been influenced by a slight slowdown in Chinese VIP drop amounts. The situation with Chinese VIP drop amounts is currently less than half of the historical peak, and considering that the number of Chinese entrants is expected to surge significantly starting in the fourth quarter, a sharp improvement in performance is anticipated."