Corporate Logo(source: ir.lottetour.com)
On September 2, Hanwha Investment & Securities reported that Lotte Tour Development (032350) achieved record results last month, further solidifying its presence in the casino sector. The brokerage maintained its target price at 28,000 won and reiterated a “Buy” rating.
Lotte Tour Development’s casino drop amount (total chip purchases) reached a record 251.5 billion won in August, once again setting a new high. The number of visitors also hit an all-time peak of 57,042.
The hold rate (casino win rate) was relatively soft at 15.3%. Analyst Park Soo-young of Hanwha Investment & Securities commented, “Given the early growth stage of the property, indicators such as drop amount and visitor numbers are more important than hold rate or net revenue.”
While the casino business is expected to pause for breath in September, typically an off-season, the brokerage projected another record high in October. The company has raised its maximum table betting limit to 100 million won and introduced a mix of tables with minimum bets of 100,000 won and 200,000 won, encouraging higher drop volumes.
As of the second quarter, the casino operated 159 tables (125 baccarat, 15 poker, and 19 for other games). It plans to expand capacity to 166 tables by September with the addition of 12 baccarat and one poker table. “With expanded capacity and higher betting limits, expectations are strong for October, particularly during China’s National Day holiday,” Park said.
Looking forward, improved Korea-China relations are expected to enhance air connectivity between Jeju and mainland China, supporting further performance growth. Park noted, “Most Chinese VIP customers visiting Korean casinos already hold visas, so the capital region’s visa-free entry policy from late September will have little impact on Jeju casinos. Instead, stronger air links between Jeju and China are likely to drive growth in VIP visits and drop amounts.”
Hanwha Investment & Securities also forecast a sharp rise in Lotte Tour Development’s market capitalization. Park stated, “The company’s market cap currently stands at about 1.3 trillion won, but we expect it to grow steadily to around 2.4 trillion won by October and into next year.” He identified Lotte Tour Development as the top pick in the sector.
*[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 1.275 trillion won (as of September 1, 2025, closing price).
Corporate Logo(source: ir.lottetour.com)
On September 2, Hanwha Investment & Securities reported that Lotte Tour Development (032350) achieved record results last month, further solidifying its presence in the casino sector. The brokerage maintained its target price at 28,000 won and reiterated a “Buy” rating.
Lotte Tour Development’s casino drop amount (total chip purchases) reached a record 251.5 billion won in August, once again setting a new high. The number of visitors also hit an all-time peak of 57,042.
The hold rate (casino win rate) was relatively soft at 15.3%. Analyst Park Soo-young of Hanwha Investment & Securities commented, “Given the early growth stage of the property, indicators such as drop amount and visitor numbers are more important than hold rate or net revenue.”
While the casino business is expected to pause for breath in September, typically an off-season, the brokerage projected another record high in October. The company has raised its maximum table betting limit to 100 million won and introduced a mix of tables with minimum bets of 100,000 won and 200,000 won, encouraging higher drop volumes.
As of the second quarter, the casino operated 159 tables (125 baccarat, 15 poker, and 19 for other games). It plans to expand capacity to 166 tables by September with the addition of 12 baccarat and one poker table. “With expanded capacity and higher betting limits, expectations are strong for October, particularly during China’s National Day holiday,” Park said.
Looking forward, improved Korea-China relations are expected to enhance air connectivity between Jeju and mainland China, supporting further performance growth. Park noted, “Most Chinese VIP customers visiting Korean casinos already hold visas, so the capital region’s visa-free entry policy from late September will have little impact on Jeju casinos. Instead, stronger air links between Jeju and China are likely to drive growth in VIP visits and drop amounts.”
Hanwha Investment & Securities also forecast a sharp rise in Lotte Tour Development’s market capitalization. Park stated, “The company’s market cap currently stands at about 1.3 trillion won, but we expect it to grow steadily to around 2.4 trillion won by October and into next year.” He identified Lotte Tour Development as the top pick in the sector.
*[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 1.275 trillion won (as of September 1, 2025, closing price).