Kangwon Land, Pyeongchang come pimpik cost price target to issue the uncertainty ↓ - one geumtu

[Korea hyerin nine financial newspaper reporter] said that one of the financial investment lowered the price target to slow growth and PyeongChang Olympic-related costs for the uncertainty problem in 16 days, Kangwon Land. The target price was lowered down to only 5% 3 6000 won, he maintained a neutral recommendation.

Pyeongchang Olympic corporate sponsors of the goal is a state where the current is below about 9 percent of 980 billion won. As a financial investment associated with 'choesunsil Gate' was expected to be a difficult goal to achieve because the high commitment of the sponsor companies.

This "According to the press (Pyeongchang Olympics) if 38% of the Organizing Committee of the income structure and relying on local sponsors and under-course inevitably increase the deficit" yigihun Institute of brokerage said, "In this case the government is the largest regional now he said about two trillion won and difficult to ignore preceded the regional development and social contribution logical to Kangwon Land have cash around if the situation calls for support, including advertising expenses.

It means that the whole amount paid is below the Kangwon Land, but I highly value the earnings stability is his explanation to that act negatively on the share price.

Furthermore, Kangwon Land has recorded a poor performance last year, this year expected growth rate is low.

The researchers, from 2013 to 2015 was slow to 4% sales growth at a CAGR of 9%, also lower ski slopes customers and reduced water park opening delay, and expect 2017 sales chongryangje / electronic card system, such as growth rate (3%) He said, adding that "it is difficult to expect the leverage effect of cost control to growth slowdown and uncertainties related to the costs coexistence Pyeongchang Olympics.

Gangwon 4Q11 sales / operating profit fell short of the 4,100 land one hundred million won (+ 1% YoY) / 1,188 million (-1%) consensus by 6%, respectively. The number of visitors has decreased by 0.5% candlelight vigil impact, VIP sales were reduced by approximately 13%.

The researchers' cause profits sluggish government management evaluation incentive (cost and SG & A) is about 88 billion, Gangwon FC because of donations (about 10 million) have been reflected Add "He explained that," in particular, that there were other costs significantly costs (impairment and bad debt) relating to major subsidiaries as homologous theme parks / chuchu Park / Donggang City star that the cleanup goals this year are estimated to be approximately 36 billion won reflects "he said.



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