[Click eStock] "Innocean, Earnings Normalization Faster Than Expected"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 90,000 Won... Closing Price on 7th at 65,600 Won

[Asia Economy Reporter Kum Bo-ryeong] An analysis suggests that Innocean's performance normalization is occurring faster than expected.

According to Daishin Securities on the 8th, Innocean's fourth-quarter performance is estimated at a gross profit of 170 billion KRW and an operating profit of 41.2 billion KRW, representing increases of 9% and 3% respectively compared to the previous year.

Kim Hoe-jae, a researcher at Daishin Securities, stated, "Marketing activities, which had been restrained due to the COVID-19 pandemic, resumed mainly online from the third quarter of last year. With vaccine distribution, there is an expectation that life will return to normal this year, leading advertisers to increase their marketing expenditures. This results in better-than-expected performance for the fourth quarter of last year." He added, "In particular, the launch of the GV80 in the U.S. market starting November last year has led to a rapid recovery in U.S. performance, and the release of the GV70 in December last year has generated a captive effect with active domestic marketing."

Kia Motors' change of its CI is a positive factor. Innocean completed the design work for Kia Motors' CI by the end of last year, and the logo at Kia Motors' headquarters in Yangjae-dong, Seoul, was changed earlier this year. On the 6th, the new logo and brand slogan were unveiled through YouTube, Facebook, and other platforms. On the 5th, the 'New Kia Brand Showcase' will be held online.

Researcher Kim said, "Since the CI has been revealed, the CI changes at global dealerships and online and offline events will be actively conducted, and related revenues are expected to be mostly recognized in the first half of the year." He added, "Following the strong performance in the fourth quarter of last year, the effects of Kia Motors' CI change and new car marketing are expected to result in strong performance in the first quarter of this year as well."

Daishin Securities has given Innocean a 'Buy' investment rating with a target price of 90,000 KRW. The closing price on the 7th was 65,600 KRW.

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