[Edaily Reporter Kim Kyung-eun ] #GS P&L, a hotel operator affiliated with GS Holdings, is trading higher in early trading on the 5th after posting an earnings surprise in the second quarter.

According to MP Doctor, as of 9:12 a.m. today, GS P&L is trading at 46,050 won, up 5,800 won (14.41%).

This is interpreted as a surge in buying interest following the announcement of second-quarter earnings that exceeded market expectations. GS P&L disclosed yesterday that its consolidated operating profit for the second quarter was 29.36 billion won, a 153.9% increase year-over-year.

Revenue for the same period rose 41.7% to 158.961 billion won. Net income was preliminarily estimated at 19.222 billion won, a 219.6% increase.

The securities industry expects GS P&L to post record-high earnings in the third quarter. In a report released today, Hana Securities projected GS P&L’s third-quarter revenue to rise 34% to 162.2 billion won and operating profit to increase 111% to 42.1 billion won.

Lee Ki-hoon, an analyst at Hana Securities, explained, “Despite the strong won and volatile oil prices, inbound demand in Korea is expected to remain robust,” adding, “Since supply is limited in comparison, we can expect a structural rise in average daily rate (ADR) and earnings leverage.”

Lee Hwa-jeong, an analyst at NH INVESTMENT & SECURITIES, also noted in a report released the same day, “Profit leverage driven by the simultaneous growth of occupancy (Occ.) and average daily rate (ADR) is set to take full effect,” adding, “The company is expected to be the biggest beneficiary amid improving hotel market conditions driven by rising inbound demand.”

She further predicted, “As the second half of the year is also the industry’s peak season, we expect stable earnings growth to continue,” adding, “With favorable market conditions persisting and the company repeatedly demonstrating its financial strength, a stock re-rating is possible.”