Paradise runs foreigner-only casinos that domestic residents are not allowed to enter. About 90% of revenue comes from its four casinos in Seoul, Incheon, Busan and Jeju, and roughly 10% from hotels, with Paradise City in Incheon serving as the core pillar. It spent about ₩210 billion to acquire the Grand Hyatt Incheon and reopened it in March 2026 as the "Hyatt Regency Incheon Paradise City," completing a large integrated resort with 1,270 rooms, and its credit rating was upgraded to A+ on the back of improved earnings and finances. The notable point right now is that its high-barrier business and the tailwind from a strong won leave it with solid asset value and cash generation — a P/B of 0.78x and an FCF yield of 9.8% — while this year the costs of the Hyatt expansion along with higher labor and advertising expenses are weighing on profit, so it remains to be confirmed whether the added rooms translate into greater casino traffic.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 236.7%).
- Revenue rose 7.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.8% higher than a year earlier.
- ROE is 5.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.6%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Paradise Global 37.62% (corporate)
Controlling bloc incl. related parties 45.27%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Paradise operates foreigner-only casinos that domestic residents cannot enter.
- About 90% of revenue comes from casinos and roughly 10% from hotels.
- It runs casinos at four sites: Walkerhill in Seoul, Paradise City in Incheon, Busan, and the Grand in Jeju.
- Paradise City in Incheon is an integrated resort (casino, hotel and convention center) built together with Japan's Sega Sammy, and it is the core pillar of the group's revenue and growth.
- The way it earns money is simple: overseas visitors place bets at the casino tables, and the company's share of that wagered amount (the drop) becomes revenue.
- The latest close is ₩12,210 and market capitalization is ₩1.1 trillion.
- The price sits below its 20-day line (₩13,810) and below its 60-day line (₩14,676).
- Trading below both the short- and mid-term moving averages, the trend looks depressed.
- The RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 38.7, a neutral level.
- The one-month change is -19.2%, the three-month change is -16.4%, and the position versus the 52-week high is -48.4%.
- Relative strength against the KOSPI is 9 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 92% of all stocks by strength.
- Over the past three months it lagged the index by 33.8%.
- Chart reading is best done alongside trading volume and the dates disclosures occur.
- The P/E ratio (how many times one year's earnings the price represents) is 11.99x.
- The P/B (how many times the company's net assets the price represents) is 0.66x, meaning the shares trade below book equity.
- For a company with heavy real estate and facility assets like a hotel-casino operator, a P/B below 1x reads as a sign of undervaluation relative to asset value.
- Profitability shows an operating margin of 13.6% and an ROE (how much it earns in a year on equity) of 5.5%.
- The debt ratio (debt relative to equity) is 236.7%, somewhat high, reflecting the nature of a business that requires heavy funding for resort and hotel investment.
- EV/EBIT (a P/E-like measure that also reflects debt, enterprise value divided by operating profit) is 14.2x.
- Net debt (total borrowings minus cash) is about ₩861.2 billion.
- The FCF yield (the ratio of cash actually generated to market cap) is 9.8%, a firm level of cash generation for an industry with large facility investment.
- The five-year trajectory traces a clear recovery story.
- From an operating loss of ₩55.2 billion in 2021, earnings rebounded as pandemic lockdowns eased.
- As foreign tourists returned from 2023 onward, the company posted record results in 2025 with revenue of ₩1.1499 trillion and operating profit of ₩155.8 billion.
- Net profit grew at a double-digit pace for a third straight year (+24.9% YoY), making the recovery clear.
- The first quarter of 2026, however, had a different character.
- Casino drop actually rose (+3.6%, with general-customer drop up +16.8%) and foreign visitor demand stayed firm.
- Even so, operating profit fell -34.9% and net profit fell -56.7%.
- The cause was not demand but cost: the operating expenses, labor costs and advertising expenses of the Incheon Hyatt, acquired early this year and opened in March, all landed at once.
- In May, thanks to Japanese and Chinese holidays and a strong won, casino net revenue reached ₩98.9 billion, a record for the month of May, but June declined again, showing large monthly volatility.
- In short, this is a year in which demand is alive but expansion costs are weighing on profit.
- The biggest event is the Incheon Hyatt acquisition.
- The company spent about ₩210 billion to acquire the West Tower of the Grand Hyatt Incheon and reopened it in March 2026 as the "Hyatt Regency Incheon Paradise City." This brought Paradise City to a large integrated resort with 1,270 rooms.
- It is an expansion strategy aimed at keeping guests longer and in greater numbers so as to channel them into casino visits.
- In the short term, the acquisition and early operating costs reduced profit, but over the medium term the expanded lodging capacity could feed casino traffic.
- The upgrade of its credit rating to A+, based on improved earnings and finances, is another recent positive signal.
- Beyond this, disclosures on quarterly and monthly results, investor briefings (IR) and dividends (₩150 per share) followed.
- The strengths are clear.
- It operates a high-barrier business as a foreigner-only casino, visitor demand is alive, and a strong won works in its favor by boosting foreigners' purchasing power.
- At a P/B of 0.78x it is cheap relative to asset value, and with an FCF yield of 9.8% its cash generation is also firm.
- The cautions are equally clear.
- This year, Hyatt expansion costs, labor costs and advertising costs are weighing on profit, so net profit is likely to decline versus last year.
- The debt ratio is high and monthly casino revenue is quite volatile.
- Ultimately this is a stock that is strong when the expansion costs pass and the added rooms feed casino traffic, and weak when the cost burden drags on or foreign visits turn down.
🔎 Valuation vs peers Undervalued
Compared against Korea's three casino operators — the foreigner-only casino operators and the only domestic-resident casino.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| GKL | 13.53x | 1.44x | 10.66% |
| Kangwon Land | 9.89x | 0.79x | 8.03% |
The closest comparison is GKL, which runs the same kind of foreigner-only casinos. Paradise's P/E of 14.3x is similar to GKL's 13.7x, but its P/B of 0.66x is lower than GKL's 1.46x and even below Kangwon Land's 0.8x. That a company holding extensive hotel and resort real estate trades below its net assets can be seen as undervaluation from an asset-value perspective. There is a catch, however, in looking only at the P/E on last year's results: this year the acquisition and operating costs of the Incheon Hyatt are weighing on profit, so net profit is likely to fall versus last year. So the appeal is somewhat diluted on the earnings multiple alone, but taking asset value (P/B) and cash generation (FCF yield) together, we judge it to be in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩12,210 and the market capitalization is ₩1.1 trillion. The price sits below its 20-day moving average (₩13,810) and below its 60-day moving average (₩14,676). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.7, a neutral level. The one-month change is -19.2%, the three-month change is -16.4%, and the position relative to the 52-week high is -48.4%. Relative strength versus the KOSPI is 9 (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 33.8%. 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 -33.78% / 6M -52.34% / 12M -66.46%
Key metrics vs whole-market median
Valuation
The P/E of 11.99x is in line with the whole-market median (13.81x). The P/B of 0.66x is below the whole-market median (1.15x).
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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.891x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.5%, in line with the whole-market average (5.0%). The operating margin is 13.6%. The debt ratio is 236.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $658.9M | $710.6M | $762.1M | +7.25% ↓ slower |
| Operating profit | $96.6M | $90.2M | $103.3M | +14.52% ↑ faster |
| Net profit | $41.5M | $50.1M | $62.5M | +24.89% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $274.7M | $389.5M | $658.9M | $710.6M | $762.1M |
| Operating profit | -$36.6M | $6.9M | $96.6M | $90.2M | $103.3M |
| Net profit | -$34.8M | $16.8M | $41.5M | $50.1M | $62.5M |
| Revenue CAGR | 4-yr avg 29.06% | ||||
Revenue rose 7.2% year over year (2023 ₩994.2 billion → 2024 ₩1.1 trillion → 2025 ₩1.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 14.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 29.1%. The two-year revenue CAGR is 7.5%. In the most recent quarter (Q1 2026), revenue was 3.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
Points to watch
- Revenue rose 7.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-03-10IRReopened the West Tower of the Grand Hyatt Incheon, acquired for about ₩210 billion, as the "Hyatt Regency Incheon Paradise City," expanding Paradise City to a total of 1,270 rooms.Short-term pressure on profit from acquisition and operating costs; medium-term strengthening of the base for casino traffic through expanded lodging capacity. Source
- 2026-06-02EarningsFair-disclosure of preliminary consolidated results — casino drop and hotels grew, but quarterly profit fell as expansion costs were recognized.Confirms continued top-line growth, with margins under short-term pressure from rising costs. Source
- 2026-05-14IRNotice of an investor briefing (IR) — explaining results and business conditions directly to the market.Maintains a channel of communication with investors and shares the earnings trend. Source
- 2026-05-15FilingFiled the Q1 2026 quarterly report — revenue ₩294.0 billion (+3.8%), operating profit ₩37.3 billion (-34.9%).Confirms in figures that profit declined on rising costs amid demand growth. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-08OwnershipLargest-shareholder ownership change report
- 2026-06-02EarningsFair-disclosure notice
- 2026-06-02OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-06EarningsFair-disclosure notice
- 2026-05-06EarningsFair-disclosure notice
- 2026-04-14Disclosure
- 2026-04-02EarningsFair-disclosure notice
📖 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.