Strong business growth for Kangwon Land in 2016; Daiwa

Kangwon Land Inc, operator of South Korea’s only locals-allowed casino resort has seen strong business growth in the first two months of 2016, according to Daiwa analysts.

“Management noted that the casino resort saw stable growth in the average utilisation rate of all its casino tables (around 81 percent) while it seeks ways to meet the robust casino-gaming demand at weekends,” said Daiwa analyst Thomas Y. Kwon.

“Over the medium term, management expects multi-year earnings growth, mainly on the increase of casual gamers, and the opening of the second Yeongdong highway in late 2016 and its water theme park in summer-2018,” Kwon added.

Kwon says Kangwon Land is “likely to show strong business growth in the first quarter of 2016,” forecasting first quarter revenue to rise by 9.2 percent to KRW464 billion (US$398.6 million), and profit to rise 8.3 percent to KRW183 billion.

Kwon also said the casino resort operator is ramping up the completion of its KRW167.2 billion (US$143.6 million) theme park, currently targeting a soft opening for its new theme park for the end of 2017 and a grand opening in 2018.