[Click eStock] "Lotte Information & Communication, Cloud Expansion and Beneficiary of Korean New Deal Expected"

IBK Investment & Securities Issues 'Buy' Rating and 50,000 KRW Target Price... Closing Price on 18th at 36,850 KRW

[Asia Economy Reporter Kum Boryeong] Next year is expected to be a year of leap forward for Lotte Data Communication.

According to IBK Investment & Securities on the 18th, Lotte Data Communication is expected to benefit from investments related to cloud expansion, the Korean New Deal, and digital transformation of group companies.

Lee Seunghoon, a researcher at IBK Investment & Securities, said, "First, cloud-related sales are expected to reach about 220 billion KRW next year, a 24% increase compared to this year's sales. Sales from the group's L.Cloud and cloud-related software are expected to be about 120 billion KRW, and sales from three IDCs (Internet Data Centers) are expected to be about 100 billion KRW," adding, "With the completion of the 4th center by the end of this year, related sales next year are expected to increase by more than 8.5 billion KRW, and with the rise in the group's cloud transition rate, an additional related sales increase of more than 15 billion KRW is anticipated."

Orders related to the government's Korean New Deal project are also expected to increase. External growth is anticipated through additional projects such as the government's AI learning data construction project for the Data Dam project based on the group's distribution big data, smart medical infrastructure, and smart device introduction.

IBK Investment & Securities estimates Lotte Data Communication's sales next year at 1 trillion KRW and operating profit at 58.9 billion KRW, representing increases of 14.1% and 23.5% respectively compared to the previous year. The researcher said, "Due to the impact of COVID-19, the performance of group affiliates slowed down, leading to reduced investments, but the company's will to strengthen digital competitiveness has become clearer," and added, "Investments to enhance the digital competitiveness of group companies are expected to expand."

IBK Investment & Securities gave Lotte Data Communication a 'Buy' rating with a target stock price of 50,000 KRW. The closing price on the previous day was 36,850 KRW.

This content was produced with the assistance of AI translation services.