Hotel Shilla stocks close at record low

[THE INVESTOR] Shares of Hotel Shilla, the hotel unit of Samsung Group, hit a record low on Aug. 1 after its second-quarter earnings fell far below estimates.

The price closed at 57,300 won (US$51), down 3.86 percent from the previous trading day. The figure has plunged by more than half from 141,500 won, the lowest price last year. 

The price continued to tumble over the past week since the company reported its April-June earnings on July 22. Its operating profit was 18.7 billion won, missing an earlier analyst estimate of 30.2 billion won.

Even though the company improved profits on hotel and leisure businesses, its duty-free business struggled due to increased marketing spending.

Industry watchers predict Hotel Shill could continue to suffer amid stiff competition among duty-free store operators. The government plans to open four more duty-free stores in downtown Seoul within the year.

By Lee Ji-yoon (jylee@heraldcorp.com)