Lotte Tour Development shares rose more than 5% early on the 8th. Brokerages said the rally is likely to continue as relations between Korea and China have improved and the easing of Japan travel restrictions is benefiting the company, increasing the number of Chinese visitors to Jeju, drawing in buyers.
As of 9:43 a.m. on the 8th, Lotte Tour Development was trading at 22,450 won on the Korea Exchange, up 1,100 won (5.15%) from the previous session.
Lee Hwan-uk, an analyst at Yuanta Securities Korea, said, "The recovery in the number of Chinese visitors to Jeju is continuing, and the trend of increasing market share in the Jeju casino market is also solid," and noted, "The resulting top-line growth and operating leverage effect are clear."
He added that a solid recovery in visitor numbers is expected next year as well.
The analyst said this is "a period when the benefits from improved Korea-China relations and eased Japan travel restrictions are continuing," and analyzed, "As awareness of Dream Tower rises, market share (MS) is expanding smoothly, and results are expected to improve more than earlier estimates."
Meanwhile, according to the Financial Supervisory Service's electronic disclosure system, Lotte Tour Development's provisional casino sales on a consolidation basis last month were 51.358 billion won, up 96.9% from a year earlier, and provisional hotel sales on a consolidation basis were 6.459 billion won, up 15.9% from a year earlier.
Provisional sales for the current period were 235.783 billion won, up 74.4% from a year earlier.