▲ Gangwon Land headquarters located in Jeongseon, Gangwon Province. (Photo-Gangwon Land)

The stock market gave a positive outlook on leisure stocks (株). Along with the influx of foreign tourists following the reopening (reopening of the economy), the positive factors behind the relocation of business sites are also seen as a factor.

According to Shinhan Investment & Securities, Kangwon Land's first-quarter earnings are expected to increase year-on-year to 355.9 billion won in sales, operating profit and net profit, respectively, 97.5 billion won and 75.9 billion won.

This is due to the expectation that Mass (casino visitor) traffic has normalized and that the high recovery of non-casinos due to re-opening can work positively.

The fact that both business hours and tables, which were temporarily reduced in 2017, have been restored to normal is also expected to be able to upgrade performance in terms of capa.

Ji In-hae, a researcher at Shinhan Investment & Securities, advised, "Although Kangwon Land is somewhat disappointed with the weak VIP, it is worth noting that all market participants recognize its undervalued attractiveness along with the normalization of Mass, which accounts for 90% of sales."

In the case of GKL, sales in the first quarter increased 133% year-on-year to 109.2 billion won and operating profit to 19.5 billion won, which is expected to succeed in the turnaround.

Analysts say that although it is regrettable to recover Chinese VIPs along with the recovery of the number of visitors, it is expected to benefit from Japan and foreigners visiting Korea, and high-intensity promotions following the relocation of the business to Yongsan are also contributing to the rise in performance.

According to Daishin Securities, Village de Ananti, which is scheduled to be completed in May, has already completed the sale of its target account in 2022. The Ananti Club Jeju, which is scheduled to be sold this year, will prove its brand power once again.

As differentiated experiences from differentiated spaces have established a virtuous cycle that leads to good sales performance, the increased risk of unsold houses for companies operating construction and sales projects does not apply to Ananti.

In addition to the operating sector, which has been able to achieve a stable surplus, it plans to diversify its sales sources other than sales such as Ananti Town and Eternal Journey, which is expected to be different from other resorts focused on profits from rooms and auxiliary facilities.

Cho Dae-hyung, a researcher at Daishin Securities, said, "Ananti's current stock price is an absolutely undervalued section that is 7 times PER even based on the EPS expected in 2024, excluding sales performance."