Kangwon Land Roars Back to Life: 11-Year Wait Ends with Landmark Expansion Permit, Fueling Growth and Shareholder Returns
NH Investment & Securities Analyzes Kangwon Land’s Performance Growth Momentum and Shareholder Return Appeal
NH Investment & Securities stated on the 6th that Kangwon Land’s performance growth momentum and shareholder return appeal both stand out. The target stock price was maintained at 22,000 won, and the investment opinion was maintained at buy.
Lee Hwa-jeong, a researcher at NH Investment & Securities, said, “Kangwon Land, which obtained expansion permission for the first time in 11 years, is expected to need time to prepare for the expansion, so the effect on short-term performance will be limited.” However, she explained, “Starting in 2028 when the expansion effect is fully reflected, it will be able to recover the past operating profit level (annual 500 billion won). In addition, since value-up is included in the government’s management evaluation this year, the company, as a public corporation, is likely to implement a shareholder return policy in line with this.”
The researcher continued, “The company’s biggest concern at present is the slowdown in mass indicators, and amid growing difficulties such as aging businesses, restrictions on the number of days of entry, and low betting limits, this has led to the activation of alternatives such as illegal hold’em pubs.” He added, ”Fortunately, amid the recent strengthening of crackdowns on illegal hold’em pubs, the business environment is expected to improve with the acquisition of a casino business license on the 5th. By 2028, the general business area will increase by 5,748㎡ (+40%), the number of tables by 50 (+25%), and the number of slot machines by 300 (+18%).”
He also said, “Starting next year, there is a high possibility that the total sales volume of the gambling industry will be relaxed, and there is also a possibility that restrictions on the number of days of entry will be relaxed,” adding, “Considering the increase in the betting limit for foreigners, the possibility of an increase in the betting limit for domestic residents in the future is also valid. In case of additional regulatory easing, both P (spending per person) and Q (number of visitors) will be able to significantly expand, so additional upside expectations are possible.”