IBK Securities analyzed on the 26th that, due to the policy allowing visa-free entry for Chinese group tourists, the performance growth trend is expected to continue in the second half of the year, following the second quarter. No investment opinions or target stock prices were presented. The previous day's closing price of West T&D was 9,160 won.
This year, the consolidated sales of West T&D in the second quarter recorded 54.6 billion won, an increase of 16.4% compared to the same period last year. Operating profit increased by 25.8% year-on-year to 11.2 billion won.
Nam Seong-hyun, a researcher at IBK Securities, noted regarding the second-quarter performance, "Considering the property tax imposed in the second quarter, I believe the improvement in operating performance has expanded compared to the first quarter."
The improvement in West T&D's second-quarter operating performance is analyzed to have been driven by the growth of its hotel division. Operating profit at Square One decreased by 14.9% year-on-year, but the hotel division's operating profit increased by 26.4% compared to the same period last year to 6.7 billion won.
West T&D's performance growth trend is expected to continue in the second half of the year. Researcher Nam explained, "As visa-free entry for Chinese group tourists is permitted, the demand from foreign visitors to Korea is likely to expand further, and the upward trend of average daily rates (ADR) in the Seoul area is expected to continue."
He continued, "With West T&D boasting a scale of 1,700 rooms, its capacity to accommodate foreign visitors is high, and the increase in ADR compared to competitors is significant, suggesting that the effects of increased foreign demand will be more pronounced."