[THE INVESTOR] Although the third-quarter performance of Paradise Group will be below expectations, its casino and resort business will continue to grow in the mid- to long-term, according to Korea Investment and Securities on Oct. 6.

The securities firm maintained its “buy” recommendation and 20,000 won (US$17.97) target price for the company, saying that its revenue in the third quarter would reach 176.4 billion won, up 23.5 percent on-year, with operating profit of 15.8 billion won, up 38.3 percent from the same period last year.

Paradise will open a casino resort in April 2017, which will be reflected in its performance from the second quarter of next year, said Choi Min-ha, an analyst at the securities firm. The new operation will attract wider clientele, and by directly managing the hospitality and food and beverage sections, cost will be down. It will maintain the lead in South Korean casino resort business at least for three years, he added.

By Hwang You-mee (glamazon@heraldcorp.com)