Corporate Logo(source: ir.lottetour.com)
SK Securities raised its target price for Lotte Tour Development (032350) from 21,000 won to 25,000 won, citing expectations of increased inflows of Chinese group tourists and the upcoming National Day holiday effect.
Na Seung-doo, an analyst at SK Securities, said on September 10, “Casino monthly revenue in August exceeded 40 billion won, and with average monthly casino sales of around 35 billion won in the second quarter, the operating margin surpassed 20%. The disclosed monthly performance through August alone is enough to build strong expectations for third-quarter results.”
He added, “In the fourth quarter, the combined effect of Chinese group tourist inflows and the National Day holiday is expected, making it highly likely that the company will achieve record-high quarterly earnings.”
For the third quarter, SK Securities projected revenue of 159.4 billion won and operating profit of 37.7 billion won, up 14.59% and 69.82% year-on-year, respectively. Full-year revenue is estimated at 606.1 billion won, a 28.55% increase from last year, with operating profit of 125 billion won, marking a turnaround into the black.
Na noted, “While there are concerns about intensifying competition with inland regions if a visa-free policy for Chinese group tourists is implemented, currently the impact of group tourists on visitors to Jeju Dream Tower Casino is minimal.”
He continued, “As the number of group tourists visiting Korea increases, the spillover effects on tourist destinations outside of Seoul are likely to grow. Unlike inland regions, Jeju has shown a clear pattern where foreign arrivals are directly linked to increased casino visitation, which in turn translates into earnings growth.”
*[KOSPI] Lotte Tour Development(032350) is a leading comprehensive travel company in South Korea, engaging in tourism development, domestic and international travel agency, air ticket sales agency, charter transportation, hotel, and retail businesses. Its market capitalization is 1.291 trillion won (as of September 9, 2025, closing price).
Corporate Logo(source: ir.lottetour.com)
SK Securities raised its target price for Lotte Tour Development (032350) from 21,000 won to 25,000 won, citing expectations of increased inflows of Chinese group tourists and the upcoming National Day holiday effect.
Na Seung-doo, an analyst at SK Securities, said on September 10, “Casino monthly revenue in August exceeded 40 billion won, and with average monthly casino sales of around 35 billion won in the second quarter, the operating margin surpassed 20%. The disclosed monthly performance through August alone is enough to build strong expectations for third-quarter results.”
He added, “In the fourth quarter, the combined effect of Chinese group tourist inflows and the National Day holiday is expected, making it highly likely that the company will achieve record-high quarterly earnings.”
For the third quarter, SK Securities projected revenue of 159.4 billion won and operating profit of 37.7 billion won, up 14.59% and 69.82% year-on-year, respectively. Full-year revenue is estimated at 606.1 billion won, a 28.55% increase from last year, with operating profit of 125 billion won, marking a turnaround into the black.
Na noted, “While there are concerns about intensifying competition with inland regions if a visa-free policy for Chinese group tourists is implemented, currently the impact of group tourists on visitors to Jeju Dream Tower Casino is minimal.”
He continued, “As the number of group tourists visiting Korea increases, the spillover effects on tourist destinations outside of Seoul are likely to grow. Unlike inland regions, Jeju has shown a clear pattern where foreign arrivals are directly linked to increased casino visitation, which in turn translates into earnings growth.”
*[KOSPI] Lotte Tour Development(032350) is a leading comprehensive travel company in South Korea, engaging in tourism development, domestic and international travel agency, air ticket sales agency, charter transportation, hotel, and retail businesses. Its market capitalization is 1.291 trillion won (as of September 9, 2025, closing price).