Yuanta Securities Korea on Dec. 8 said Lotte Tour Development is clearly benefiting from growth as the number of Chinese tourists keeps recovering and its share in Jeju's casino market continues to rise. It maintained a Buy rating and raised its target price to 27,000 won from 23,000 won. Lotte Tour Development's previous session closing price was 21,350 won.
Lee Hwan-uk of Yuanta Securities Korea said, "Compared with the third quarter of 2016 before the THAAD dispute, this year's third-quarter recovery rate of Chinese arrivals to Jeju is 51.3%, and flight frequency between Jeju and China is at 84.7%," adding, "With improvements in China-Korea relations and continued benefits from the Japan travel trend, the number of arrivals is expected to show a solid recovery next year as well."
Lotte Tour Development's casino segment posted third-quarter net revenue of 139.3 billion won, up 65.4% from a year earlier. Total visitors came to about 172,783, up 60.7% on-year.
Total drop (the amount customers exchanged for chips to play) rose 78.4% on-year to 848.5 billion won, and drop per person was 49 million won.
The analyst said, "As awareness of Dream Tower increases, market share (MS) expanded smoothly from 69.6% at the end of 2024 to 79% at the end of Oct. 2025," adding, "Results are expected to improve more than previously estimated."
Visitor growth rates in October and November were 55.9% and 41.3%, respectively, both continuing to exceed market expectations. Accordingly, there are not likely to be major variables for strong fourth-quarter results this year.
The analyst said, "With additional baccarat tables that can be opened, as many as 1,600 hotel rooms, and an upward trend in betting amounts, conditions appear favorable for sustained medium- to long-term earnings improvement across all fronts."