The average target price of 035250.KS is 20183 and suggests 22% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 22000.0. This translates into 33% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 15900.0. This is equivalent to 4% downside potential in the worst case. 

Kangwon Land, Inc. engages in the casino, tourist hotel, and ski resorts businesses in South Korea. Its business also covers condominium, golf course, and a water park. The company operates the Kangwon Land Casino with 200 game tables, 1,360 slot machines, and video games. It also operates the Kangwonland Hotel, Convention Hotel, High1 Hotel, Mountain Condominium, Valley Condominium, and Hill Condo; High1 Ski Resort; High1 CC public golf course; and a gambling addiction care center, as well as High1 sports teams. Kangwon Land, Inc. was founded in 1998 and is based in Jeongseon, South Korea.

Korea

Kangwon Land, Inc.

Consumer Cyclical

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been outstanding and can be rated excellent compared to its peers. At the same time, the average five-year yield has been significantly higher and exceeded nearly all its peers. On average, the company pays dividends annually. 

035250.KS reported revenue of KRW 1 426 863mn in the last 12 months, up 3% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 34% from FY23 to KRW 2 253.04. Market expects EPS to reach KRW 2 054.60 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. When compared to its international counterparts in the same sector and industry (as shown above), the stock has exceeded their performances, leading by 4ppts in total. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 6ppts and its growth decelerated by 0ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 45.3% in the last 12 months, up from 39.8% in FY23. 

Historically, 035250.KS has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 32.0%, a growth from 24.6% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 10.0% in the last 12 months, an increase from 7.9% in FY23. The market analysts predict that RoA will be 13.1% in FY24, again stronger than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 11.9%, above the peers. The consensus estimate for FY24 for RoCE is 21.8%, again ahead of the peers. 

Kangwon Land, Inc. reported a return on equity (RoE) of 12.1% in the last 12 months, up from 9.6% in FY23. The market consensus projects an RoE of 16.1% in FY24, again behind its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.6 in the past several years. This ratio implies a good shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

035250.KS has average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity may be unstable and is average on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is minimal. We note resilient historical revenue growth, robust profitability, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, excessive margin volatility.

In highly turbulent market conditions, 035250.KS is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, 035250.KS is not overly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will remain relatively stable. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITDA, reasonably priced on P/FCF. 

Kangwon Land, Inc.

₩ 16440

6

Kangwon Land, Inc.

₩ 16440

6

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₩ 16440

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