If Buying 'Car Rally' Stocks Feels Burdensome, Look for Significantly Undervalued Stocks

[Asia Economy Reporter Lee Seon-ae] Hanla Holdings has been analyzed as an automotive parts stock with significantly undervalued corporate value.

According to Ebest Investment & Securities on the 27th, despite the recent rally of automotive parts companies, Hanla Holdings' corporate value is judged to be significantly undervalued. In particular, the equity value of its major affiliate Mando currently amounts to 940 billion KRW, and considering the business value of its own business division, which has recently seen rapid fundamental improvements, it is in a state of significant undervaluation. It appears that Hanla Holdings' market capitalization has not reflected the value of its subsidiaries since the second half of last year, but since 2021, the value of its own business has begun to show a full-fledged upward trend, which is expected to contribute significantly to the increase in market capitalization.

Yoo Ji-woong, a researcher at Ebest Investment & Securities, emphasized, "In the case of Mando, performance is expected to improve significantly due to increased production volume from global customers, and accordingly, Hanla Holdings' corporate value is also expected to follow."

He maintained a buy investment opinion and a target price of 64,000 KRW for Hanla Holdings.

Researcher Yoo stated, "The company's profit and loss flow showed a slowdown compared to the second half of last year due to the combined effects of the off-season and COVID-19 in the first quarter of this year, but this is a temporary phenomenon," and forecasted, "From the second quarter, expansion of high-margin aftermarket business and module business scale is expected to increase margins in its own business." He added, "Hanla is also shifting its sales composition to the sale of high-profit own business sites in the metropolitan area, which will contribute to the improvement of equity-method income."

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