[EQUITIES] Shinhan Investment forecasts 8.9% decline in Hotel Shilla’s Q2 earnings

[THE INVESTOR] Shinhan Investment on July 12 slashed its target price on Hotel Shilla shares to 85,000 won (US$73.80) from 90,000 won on its declining operating profit.

Hotel Shilla’s second quarter operating profit is expected to fall 8.9 percent on-year to 26.80 billion won, the brokerage said. 

Shinhan’s projections are below the current market consensus of 3.32 billion won.

“The company’s downtown duty-free shop is expected to post a 25.5 percent increase in sales, but its airport outlet is set to decline by 22.5 percent.

But the brokerage maintained a “buy” opinion citing forecasts of improved performance in the third quarter.

By Kim Ji-hyun (jemmie@heraldcorp.com)