[Click eStock] "Innocean Expected to Show Solid Performance in Q4 Last Year"

[Asia Economy Reporter Eunmo Koo] DB Financial Investment forecasted that Innocean would achieve favorable results in the fourth quarter of last year. The investment opinion was maintained as 'Buy,' and the target price was raised from the previous 72,000 KRW to 82,000 KRW.

Shin Eun-jung, a researcher at DB Financial Investment, estimated in a report on the 11th that Innocean's gross profit for the fourth quarter of last year would increase by 11.1% year-on-year to 170.1 billion KRW, while operating profit would decrease by 1.6% to 39.1 billion KRW. Researcher Shin explained the reason for the favorable performance, stating, "Contrary to expectations that the seasonal peak would shrink due to the impact of COVID-19, the scale of advertising expenditures by affiliated and non-affiliated advertisers is recovering. New car advertisements such as the GV80 in the Americas and the Carnival and GV70 in Korea were executed, and BTL, which was absent in the second and third quarters of last year, is recovering due to CI changes and new car launches."

She added, "Although non-affiliated and Wellcom are still affected by COVID-19, the new car effect of captive brands is expected to be positive in both the short and long term," and estimated that "this year, with the execution of events such as the Genesis line in the Americas and Kia's CI changes, operating profit is expected to increase by 25.5% year-on-year to 137.1 billion KRW."

The investment opinion was maintained as 'Buy,' and the target price was revised upward to 82,000 KRW. Researcher Shin explained, "The expansion of Genesis in the Americas and the scheduled electric vehicle launches in the second and third quarters of this year keep the new car momentum valid through this year," adding, "Now, with a full recovery, the previously significant concerns about performance uncertainty are also being eliminated."

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