Lotte Tour Development (032350) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Despite its name, Lotte Tour Development today is not a travel agency but the operator of the 'Jeju Dream Tower' integrated resort, with most of its revenue coming from a foreigner-only casino, alongside the Grand Hyatt Jeju hotel and a travel division. In 2025 casino revenue reached ₩476.6 billion, up 61.8% year on year, forming the large pillar of total revenue of ₩653.4 billion; the annual report confirmed the first net-profit surplus since Dream Tower opened (₩27.6 billion), and the company also advanced financial normalization by using ₩590.7 billion of capital surplus to cover accumulated deficits. What stands out lately is an earnings-improvement phase in which casino visitors and drop are growing at double-digit rates and operating profit is expanding fast, set against a high 483.7% debt ratio and an interest burden that weighs on net profit, leaving results sensitive to visitor conditions and to rates and the exchange rate.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Casinos” (Retail, Consumer Goods & Food · Leisure, Travel & Education), a type typically read first through EV/EBITDA.
Casinos invest heavily in facilities and property, so heavy depreciation and interest can weigh on net income and mask the true cash the business throws off. That makes EV/EBITDA — operating cash generation before depreciation, interest, and tax — the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 495.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 34.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 38.6% year over year, and the pace is slowing (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 28.1% higher than a year earlier.
- ROE is 7.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 23.1%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Ki-byung 22.72% (individual)
Controlling bloc incl. related parties 39.5%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis Reading
Despite its name, Lotte Tour Development today is not a travel agency but the operator of the 'Jeju Dream Tower' integrated resort. Most of its revenue comes from a foreigner-only casino. In 2025 casino revenue reached ₩476.6 billion, up 61.8% year on year, forming the large pillar of the company's total revenue of ₩653.4 billion. Added to this are the Grand Hyatt Jeju hotel (78.5% occupancy) and the existing travel and airline-ticket business. In short, the casino drives profit, the hotel fills it with visitors, and the travel division rounds it out.
The latest close is ₩12,660 and the market capitalization is ₩1.0 trillion. The price sits above its 20-day moving average (₩12,182) and below its 60-day moving average (₩15,601). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.7, a neutral level. The one-month change is -21.4%, the three-month change is -37.9%, and the position relative to the 52-week high is -52.3%. Relative strength versus the KOSPI is 8 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 8% of all stocks. Over the past three months it lagged the index by 26.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation metrics look expensive at first glance. The P/E ratio (how many times one year's earnings the price represents) is 36.30x, high. But this figure is inflated because it divides by the small net profit of a first profitable year (₩27.6 billion). Net profit is small not because business is weak but because of interest on the debt taken on to build the resort. The operating margin is high at 21.9%, and operating profit itself is solid at ₩143.3 billion. The problem is the financial burden. The debt ratio (debt against equity) is very high at 483.7%. The current ratio (assets readily usable against debts due within a year) is low at 32.3%. The interest coverage ratio (the degree to which operating profit covers interest) is around 1x, so the interest burden is heavy. Reflecting debt as well, EV/EBIT (enterprise value divided by operating profit - a debt-adjusted counterpart to the P/E) is 17.1x. FCF yield (the ratio of actual cash generated to market cap) is 7.3%, so cash-generating power looks better than the earnings metrics.
The growth trajectory is steep. Revenue rose from ₩107.1 billion in 2021 to ₩653.4 billion in 2025, a five-year average annual gain of 57%. Operating profit improved rapidly from a loss of ₩60.6 billion in 2023 to ₩39.0 billion in 2024 and ₩143.3 billion in 2025. Net profit, after losses of ₩224.7 billion in 2022, ₩202.2 billion in 2023, and ₩116.6 billion in 2024, turned to a first surplus of ₩27.6 billion in 2025. The first quarter of 2026 continued the growth with revenue of ₩156.2 billion (+28%) and operating profit of ₩28.8 billion (+121%). That said, the first quarter is a low season, so net profit was still a loss of ₩7.46 billion. With interest costs large, peak-season results (Q2-Q4) determine the annual surplus. As the company gains room to refinance high-rate borrowings at lower rates, the interest burden looks set to ease and net profit to grow further. So even though the P/E on last year's results looks high, on this year's expected earnings the multiple falls sharply.
Recent disclosures center on earnings improvement and capital-structure repair. The 2025 annual report confirmed the first net-profit surplus since Dream Tower opened (₩27.6 billion). In the same vein, the company decided to reclassify ₩590.7 billion of capital surplus into retained earnings to cover the deficits built up over time - a step to shed the 'deficit company' label left by years of losses. The preliminary first-quarter 2026 disclosure reconfirmed record quarterly revenue and a surge in operating profit. Improving casino and hotel results and financial normalization are backed by the disclosures.
The strong conditions and the cautions split clearly. The strength is that casino visitors and drop are growing at double-digit rates - a clear earnings-improvement phase in which operating profit is expanding fast. As an earnings-inflection stock, this year's expected earnings are closer to the real picture than the P/E on last year's results; on that basis, the valuation burden is not large relative to the high growth. The caution is the financial structure. The debt ratio is high at 483.7%, and the interest burden still weighs on net profit. Results are sensitive to visitor conditions and the casino's peak season. Ultimately, it is strong if casino and hotel results keep growing and high-rate debt is refinanced at lower rates to cut interest, and weak if visitors slow or the burden from rates and the exchange rate grows.
🔎 Valuation vs peers Fairly valued
Compared against domestic listed operators of foreigner-only casinos.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Paradise | 9.81x | 0.53x | 4.03% |
| GKL | 12.23x | 1.33x | 10.60% |
On last year's results the P/E is 43.6x, far higher than Paradise (14.3x) and GKL (13.7x). But this divides by the small net profit of a first profitable year and, as is typical of an earnings-inflection stock, is inflated relative to reality. Net profit is small because of interest on the resort's borrowings, not because the core business is weak. Operating profit is already growing much faster than peers (revenue +38.6% vs. peers around 7%). On this year's expected earnings the multiple falls to a level similar to peers. Taking together its growth-rate edge and the direction of a declining interest burden, the current valuation is hard to see as unreasonable. That said, the high debt ratio makes it sensitive to changes in results and interest rates - a point to note.
Price history Close · MA20 · MA60
The latest close is ₩12,660 and the market capitalization is ₩1.0 trillion. The price sits above its 20-day moving average (₩12,182) and below its 60-day moving average (₩15,601). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.7, a neutral level. The one-month change is -21.4%, the three-month change is -37.9%, and the position relative to the 52-week high is -52.3%. Relative strength versus the KOSPI is 8 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 8% of all stocks. Over the past three months it lagged the index by 26.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -25.99% / 6M -60.03% / 12M -60.22%
Key metrics Computed vs sector median
Valuation
The P/E of 36.30x is above the sector median (15.31x). The P/B of 2.79x is above the sector median (1.46x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 7.5%, below the sector average (12.0%). The operating margin is 23.1%. The debt ratio is 495.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $220.3M | $331.2M | $459.0M | +38.60% ↓ slower |
| Operating profit | -$42.6M | $27.4M | $100.7M | +267.45% |
| Net profit | -$142.1M | -$81.9M | $19.5M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $75.2M | $129.0M | $220.3M | $331.2M | $459.0M |
| Operating profit | -$92.2M | -$83.4M | -$42.6M | $27.4M | $100.7M |
| Net profit | -$140.9M | -$157.9M | -$142.1M | -$81.9M | $19.5M |
| Revenue CAGR | 4-yr avg 57.18% | ||||
Revenue rose 38.6% year over year (2023 ₩313.5 billion → 2024 ₩471.5 billion → 2025 ₩653.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 267.4% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 57.2%. The two-year revenue CAGR is 44.4%. In the most recent quarter (Q1 2026), revenue was 28.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 38.6% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 495.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 34.2%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-01FilingDisclosure of preliminary 2025 consolidated results - revenue of ₩653.4 billion, operating profit of ₩143.3 billion, and a first net-profit surplus of ₩27.6 billion.Confirms the first annual net-profit surplus since Dream Tower opened. Backs the direction of earnings improvement with official figures (mid-term positive). Source
- 2026-05-14EarningsFirst-quarter 2026 report - record quarterly revenue of ₩156.2 billion, operating profit of ₩28.8 billion (+121%), and a net loss of ₩7.46 billion (low season).Confirms continued growth but a first-quarter net loss due to the interest burden. The annual surplus hinges on peak-season results (short-term neutral, mid-term positive). Source
- 2026-05-04FilingDisclosure of preliminary consolidated results (cumulative) - reconfirms improvement in casino and hotel results.Reconfirms that rising casino revenue and visitor numbers are feeding into revenue and operating-profit growth (mid-term positive). Source
- 2026-05-29FilingDisclosure of the corporate governance report.A regular disclosure of governance and shareholder matters. Strengthened oversight alongside the capital-structure normalization (mid-term neutral). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue and operating profit | revenue ₩653.4 billion / operating profit ₩143.3 billion | revenue ₩653.4 billion / operating profit ₩143.3 billion | Confirmed | link |
| First-quarter 2026 revenue and operating profit | revenue ₩156.2 billion / operating profit ₩28.8 billion | revenue ₩156.2 billion / operating profit ₩28.8 billion | Confirmed | link |
| 2026 expected net profit (forward) | approx. ₩75.0 billion(self-estimate) | — | Unverified | link |
Recent filings Source
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-01EarningsFair-disclosure notice
- 2026-05-29Corporate governance report
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14PeriodicQuarterly report
- 2026-05-08OwnershipOwnership-change filing
- 2026-05-04EarningsFair-disclosure notice
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOwnership-change filing
- 2026-04-24OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.