[Click eStock] "Doosan Bobcat, Strong US Market + Dividend Normalization... Target Price Up"

[Asia Economy Reporter Ji-hwan Park] Daishin Securities announced on the 24th that it maintains a 'Buy' rating on Doosan Bobcat, citing continued strength in the North American market and rising expectations for dividend normalization, and raised the target price by 1.9% to 55,000 KRW.

Researcher Dongheon Lee of Daishin Securities stated, "The Q4 performance is expected to show sales of 1.5842 trillion KRW and operating profit of 154.2 billion KRW, representing a 15% and 118% increase year-on-year," adding, "Sales exceed market expectations by 5%, and operating profit by 15%."

Lee explained, "Sales issues such as supply chain disruptions and delays in industrial vehicle shipments have somewhat decreased," and "Dealer inventory is at an all-time low of about one month, while demand is at an all-time high, making the resolution of supply chain bottlenecks crucial."

Regarding operating profit, although the effect of price increases is being reflected slowly, some one-time reversals related to annual marketing expenses in the North American region are expected. The demand increase trend across all regions is maintained, and significant sales growth is anticipated next year.

Dividend normalization is also an expected aspect. Lee said, "With the group’s corporate governance stabilizing, dividend normalization at the 2019 level with a 3% dividend yield is expected," adding, "The major US infrastructure bill has already passed both the House and Senate, and concerns about delays in follow-up legislation are unrelated to growth in 2022." He further noted, "Considering the North American housing market boom, sustained GME demand, and the effects of US infrastructure, the recent stock price decline is judged to be excessive."

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