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JONBUR Research · Update note

Hotel Shilla · 008770 · Retail & Trade

Hotel Shilla Q3 Preliminary Results: Operating Profit ₩55.2B and Return to Net Profit

Why this report

Written after:

Hotel Shilla's preliminary Q3 filing shows operating profit of ₩55.2B, up 382.4% year on year, and net income of ₩38.4B against a loss a year earlier. This confirms the improvement reaches net income for the quarter, but the model estimate still uses data only to H1 2026 and does not yet include Q3.

Written Oct 28, 2026 · Data as of Oct 27, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

The preliminary consolidated results cover July 1 to September 30, 2026. Figures are provisional and may differ from final numbers.

Revenue was ₩959.0B, down 1.3% from Q2 (₩971.8B) and down 6.5% from ₩1,025.7B in Q3 2025. Operating profit was ₩55.2B, up 382.4% from ₩11.4B a year earlier but down 9.7% from ₩61.1B in Q2. The operating margin works out to about 5.8% of revenue, against about 1.1% a year earlier.

Pre-tax profit from continuing operations was ₩50.3B, versus a loss of ₩187.2B a year earlier. Net income was ₩38.4B, up 79.1% from ₩21.4B in Q2, versus a loss of ₩149.2B in Q3 2025. Nearly all of it belongs to the parent company's owners.

For the first nine months, revenue was ₩2,984.4B (down 1.3%), operating profit ₩136.7B (up 675.6% from ₩17.6B) and net income ₩65.9B, against a loss of ₩156.2B a year earlier.

What it changes for the thesis

The previous report, written from a news headline alone, said Hotel Shilla had large revenue but thin profit, and asked whether the operating improvement would reach net income. The filing now answers part of that: net income was positive at ₩38.4B in Q3 and ₩65.9B over nine months.

Two cautions remain. The gain came from profit, not growth: revenue fell 6.5% year on year. Operating profit also slipped 9.7% from Q2, so the improvement is not steadily rising. The filing does not give reasons for the change or a breakdown of items, so we cannot say how much is lasting. The leverage noted before (₩1.16T of borrowings, liabilities-to-equity of 207% as of H1 2026) is not updated by this filing.

What it changes for the valuation

The model estimate is a DCF, a model estimate based on the assumptions shown, and it is unchanged because it uses trailing data to H1 2026. It gives a bear of ₩0, a base of ₩4,353 and a bull of ₩57,889 per share, identical to the previous report, against a share price of ₩35,500 on October 27. It is not a price target or a buy/sell signal.

The range is very wide because the model is sensitive to thin, volatile margins. Q3 profit is not in the model, so the range may shift once trailing data include it. Current multiples (P/B 1.2, EV/EBITDA 14.5, no P/E) also exclude Q3. We do not estimate how much they would change.

Closing view

The filing is a clear positive data point: operating profit rose sharply and the quarter returned to net profit, which the previous report had left open. But it is one quarter, revenue is falling, operating profit eased from Q2, and the filing gives no explanation of what drove the result. The balance sheet is still leveraged, and the model estimate has not yet absorbed this quarter. The evidence points to a real improvement in profitability, while its durability stays unproven until later quarters and the full report.

Model estimate of fair value

Bear
₩0
-100%
Base
₩4,353
-88%
Bull
₩57,889
+66%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 6.3%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 28, 2026Update noteEarningsHotel Shilla Q3 Preliminary Results: Operating Profit ₩55.2B and Return to Net Profit
  2. Oct 28, 2026Update noteNewsHotel Shilla Reports Q3 Operating Profit of ₩55.2B, Up 382.4% Year on Year
  3. Oct 13, 2026InitiationStart of coverage (300 largest)Hotel Shilla: Thin Margins, Losses and a Share Price Near Its 52-Week Low

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information