WESTATE DEVELOPMENT CO.,LTD. (South Korea)

Year-on-year sales rose, thanks to improvement in tourism industry biz cycle, according to increase in travel demand, stemming from global economic recovery. Operating profit turned into surplus, due to ease in fixed cost burden including labor cost and depreciation expense along with cost structure improvement, and firm's year-on-year net loss sharply fell. Year-on-year financial stability improved, because of equity capital expansion, stemming from revaluation of land, and firm's overall financial structure is at good level. Biz revenue growth is forecast, in view of consumer sentiment improvement, according to ascending biz cycle, and expected No. of hotel users, thanks to geographical advantage with easy accessibility. Impacts of decline in No. of Japanese tourists are likely limited, owing to Korean's outbound travel decline related with Japan's earthquake, and expected increase of alternative tourists from other regions including Southeast Asia. Concern on forecast added burden of meal materials, due to international crop price hike is projected to negatively affect firm's earning structure improvement.