1. What Happened? Revenue Up, Profits Down

Kangwon Land reported revenue of KRW 360.8 billion in H1 2025, exceeding market forecasts. However, operating profit and net income reached KRW 58.5 billion and KRW 62.8 billion, respectively, both falling below expectations.

2. Why These Results? Rising Costs and Operating Expenses

Despite increased revenue, profitability declined due to higher costs of sales, increased operating expenses, new investments, rising labor costs, and a decrease in other income. Notably, expenses related to casino expansion and resort investments impacted profitability.

3. What’s Next? Growth Potential and Uncertainties

Kangwon Land demonstrates growth potential with continued growth in its casino segment and ongoing improvements in its resort segment. However, investment costs, intensifying competition, and macroeconomic uncertainties pose challenges. The company’s focus on ESG management and shareholder return policies are positive factors.

4. What Should Investors Do? 4 Key Investment Considerations

  • Profitability Improvement and Cost Efficiency: Investors should carefully assess the potential for profitability improvements and cost management strategies.
  • Analysis of Other Income Volatility: Analyze the volatility of other income streams and assess the company’s ability to establish stable revenue streams.
  • Macroeconomic Trends: Evaluate the impact of macroeconomic changes, such as exchange rates and interest rates, on Kangwon Land’s performance.
  • Competitive Landscape and Response Strategies: Understand the evolving competitive landscape and Kangwon Land’s response strategies to assess its ability to maintain its competitive edge.