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JONBUR Research · Initiation

Lotte Tour Development · 032350 · Business services

Lotte Tour Development: Profitability Recovered, Shares Down 41.2% Over One Year

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Lotte Tour Development has moved from heavy losses in 2021-2024 to an operating margin of 24.3% over the trailing twelve months to H1 2026, yet the share price closed at ₩10,660, 41.2% lower than a year earlier. Leverage remains very high, with liabilities at 484.4% of equity.

Written Oct 18, 2026 · Data as of Oct 16, 2026 · 0 views

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

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Thesis

The filings show a clear operating turnaround. Revenue grew from ₩107.1B in 2021 to ₩653.4B in 2025, and operating income turned positive in 2024 and reached ₩143.3B in 2025. The trailing twelve months to H1 2026 show revenue of ₩733.3B and operating income of ₩177.9B.

The share price has not followed. It is 61.5% below its 52-week high of ₩27,700 and only 5.0% above its 52-week low of ₩10,150. Returns were -9.3% over one month and -7.8% over three months. The data does not explain the decline. One recent headline from Chosun Biz cites KB Securities saying the stock may rebound if external uncertainty eases, but the data does not say what that uncertainty is.

Net income is much smaller than operating income at ₩52.7B trailing, a net margin of 7.2%, which suggests costs below the operating line absorb a large share of profit. The data does not break those costs down. The valuation model estimate is not available.

Business overview

Lotte Tour Development is listed on KOSPI in the business services sector. It was founded on 1971-05-24 and listed on 2006-06-08. It has 79,725,458 listed shares and a market capitalisation of about ₩849.9B. Its leadership is listed as 김기병, 백현 and 김한준.

The history of the numbers shows a company that scaled quickly. Revenue growth was 71.5% in 2022, 70.7% in 2023, 50.4% in 2024 and 38.6% in 2025. The data gives no segment breakdown, so the sources of revenue are not available here.

Financial analysis

These figures come from filed financial statements. Revenue rose from ₩183.7B in 2022 to ₩313.5B in 2023, ₩471.5B in 2024 and ₩653.4B in 2025. Operating margin improved from -64.6% in 2022 to -19.3% in 2023, 8.3% in 2024 and 21.9% in 2025.

Net income was -₩224.7B in 2022, -₩202.2B in 2023 and -₩116.6B in 2024, then turned positive at ₩27.8B in 2025. Return on equity was 8.1% in 2025 and 15.2% on a trailing basis.

On the balance sheet, liabilities to equity were 484.4%, which is high. Cash was ₩93.9B and the borrowings figure reported is just ₩851.6M, so the liabilities are mostly something other than reported borrowings; the data does not say what. Free cash flow on a trailing basis was ₩108.1B. Enterprise value is ₩756.8B.

Valuation

The stock trades at a P/E of 16.1, P/B of 2.3 and P/S of 1.2. EV/EBITDA is not available and the dividend yield is 0.0%. At the end of 2025 the P/E was 66.8 and the P/B was 5.0, so the multiples are lower than at that point. Year-end P/B was 1.9 in 2024 and 10.8 in 2023.

The listed peers are S-1 (P/E 24.3, P/B 2.2), Cheil Worldwide (10.2, 1.4), Doosan Tesna (64.7, 4.9), Soulbrain Holdings (1.4, 0.4) and Innocean Worldwide (5.7, 0.6). The company's P/B of 2.3 is close to S-1 and above most others, and the peer spread is very wide.

A valuation model estimate per share is not available because the model could not be worked out, so no comparison with the share price of ₩10,660 can be made.

Catalysts

  • Preliminary consolidated earnings were filed on 2026-10-01 and 2026-09-01, and the next filed results will show whether the trailing operating margin of 24.3% holds.
  • Several 5%+ holding reports were filed between 2026-09-04 and 2026-10-12, indicating changes in major shareholder positions.
  • An extraordinary shareholders' meeting took place on 2026-09-17, along with a report on changes to independent directors.
  • A filing on 2026-08-31 covered an adjustment of conversion and warrant exercise prices, which may relate to share dilution terms.
  • KB Securities, as reported by Chosun Biz on 2026-10-16, suggested a rebound may be possible if external uncertainty eases.

Risks

  • Liabilities are 484.4% of equity, leaving the company sensitive to any weakening in earnings.
  • Net income is only 7.2% of revenue against a 24.3% operating margin, so costs below the operating line weigh heavily on profit.
  • Foreign investors sold a net ₩8.0B over 20 days and foreign ownership fell from 21.7% to 20.3% in 60 days.
  • The share price is down 41.2% over one year and near its 52-week low, showing weak market sentiment.
  • The conversion price and warrant adjustment filing points to securities that could add to the share count, though the data gives no details.

Closing view

The filings show a sharp operating recovery, with profits and free cash flow now positive and multiples well below the end-2025 levels. Against that, the share price has fallen steadily, leverage is very high, net profit is thin relative to operating profit, and foreign holdings are declining. No model estimate is available, so the data cannot say whether the price is above or below a fundamentals-based value. The evidence is mixed: strong operating progress alongside a balance sheet and market trend that call for caution.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 18, 2026InitiationStart of coverage (reader request)Lotte Tour Development: Profitability Recovered, Shares Down 41.2% Over One Year

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