[Click eStock] "Lotte Rental, Integrated Mobility Platform for Movement... Stock Price Weakness is an Opportunity"

[Asia Economy Reporter Hwang Yoon-joo] Heungkuk Securities evaluated that the stock price of Lotte Rental, which is weaker compared to the public offering price based on its entry into the used car B2C market, presents an investment opportunity. The investment opinion 'Buy' and the target price of 55,000 KRW were maintained.

Choi Jong-kyung, head of corporate analysis at Heungkuk Securities, stated, "The progress of the already completed 'integrated mobility platform related to transportation,' including online/offline vehicle certification, after-sales management capabilities, electric vehicles, charging combined parking, and autonomous driving, is very positive."

Lotte Rental recently announced the acquisition of a 13.9% stake in Socar by investing 183.2 billion KRW. After officially declaring its entry into the used car market, it announced a goal to increase its market share in the used car market to 10% by 2025.

Choi said, "In the case of used cars, stable supply is secured through the country's top auction house (Lotte Auto Auction), and continuous growth is ongoing through consignment/purchase," adding, "A rebound in performance is expected due to the increase in bid success rate and sales price per vehicle."

Regarding general rentals, he diagnosed, "Performance improvement in the lift sector due to the recovery of the construction market and, in the long term, the expansion of group transaction volumes are also points to watch."

For the Green Car (mobility) sector, he stated, "The unmanned non-face-to-face vehicle rental service, steady external growth due to an increase in the number of vehicles owned, and profitability improvement due to increased vehicle operation efficiency (utilization rate) are effective."

He added, "Despite the continuous favorable performance since the new listing in August 2021, the 29% stock price weakness compared to the recorded public offering price (59,000 KRW) should rather be used as an attractive investment opportunity."

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