Foreign ownership of Lotte Tourism Development is rising sharply. It jumped from less than
1% at the beginning of the year to nearly 9%. Analysts say that foreign
purchases are increasing due to the resumption of group tours in
China and expectations for turnaround in performance.
According to the Korea Exchange on the 20th, as of the
16th, Lotte Tourism Development's foreign ownership ratio was 8.88% (6.7 million shares).
At the end of January, it was 0.15% (100,000 shares, as of January 26), less
than 1%, but it has risen to 7% in early May when Jeju's international
routes were expanding in earnest, and has been soaring to 8% this month.
The share of short selling backlog, which hit a record high of 8.17 million shares
(11.12%) as of March 7, has recently fallen below 4 million shares,
reaching 3.8 million shares (5.03%, as of October 16).
The securities industry assessed that Lotte Tourism Development's expansion of
foreign ownership and a decrease in short selling volume
reflect expectations for the recent resumption of group tours in China.
Na Seung-du, a researcher at SK Securities, said, "The effect of resuming
Chinese group tours in November and December is expected to be reflected in earnest," adding,
"The number of foreign visitors to Jeju Island every month is likely to continue to hit a new annual high in the fourth quarter."
Researcher Na analyzed that Lotte Tourism Development is expected to perform better than in the
third quarter, and the recent stock price adjustment due to short-term supply
and demand factors will serve as a clear buying opportunity.
SK Securities maintained its "buy" investment opinion and target for Lotte Tourism Development at 25,000 won.
Kiwoom Securities also suggested Lotte Tourism Development as the best
Australia for the casino industry, predicting that the Korea-China collective mining effect,
which will begin in the fourth quarter, will continue until 2024.
Lee Nam-soo, a researcher at Kiwoom Securities, said, "Expectations for the improvement
of the top line are very high, including casino growth that expects to benefit from China,
hotels that seek to recover their weekday room utilization (OCC) by attracting foreigners
and MICE, and the expansion of the travel sector due to the expansion of international flight tickets."
Kiwoom Securities expects Lotte Tourism Development to challenge its net profit turnaround by
predicting operating profit of 120 billion won in 2024.
Investment opinion and target stock price were maintained at 23,000 won, respectively.
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