Hotel Shilla is showing a strong trend, buoyed by news of a target price upgrade by a securities firm. In the morning session on the 18th, Hotel Shilla traded at 58,300 won, up 500 won from the previous trading day, displaying an upward trend.

Hyundai Motor Securities maintained its investment opinion of "BUY" for Hotel Shilla while significantly raising its target price from the previous 59,000 won to 70,000 won. Hyundai Motor Securities assessed that profitability improvements in the duty-free segment are gaining full momentum. In particular, it analyzed that cost structures, which had previously burdened performance, are improving, showing a clear trend of profitability recovery.

A positive outlook was also presented for the hotel segment. As an environment favorable to the increase in inbound tourists is being created, both room occupancy rates and average daily rates (ADR) are expected to improve simultaneously.

Reflecting these improved projections, Hyundai Motor Securities raised its 2026 estimated net income attributable to controlling shareholders from the previous 112 billion won to 124.2 billion won. Based on this, the calculated target price was also set higher.

In the market, the pace of recovery in Chinese group tourists and the growth trend of foreign tourists are cited as key variables for improving the duty-free industry's performance. With the hotel business backing up defensive performance, expectations for a company-wide earnings recovery for Hotel Shilla are also growing. However, future global economic slowdowns, changes in consumer sentiment, and exchange rate volatility are pointed out as risk factors that could act as variables on performance.

Investors are paying close attention to whether the trend of improving duty-free profitability and the pace of increase in inbound tourists will properly translate into actual earnings improvements on financial statements.

[※ This article was written with the assistance of AI. The final decision on investments is the responsibility of the investor, and the content of the article may change depending on market conditions.]