[Click eStock] "Lotte Information & Communication, Electric Vehicle Charging Business Becoming Visible"

Target Price Lowered to 32,000 Won

[Asia Economy Reporter Hwang Yoon-joo] Hi Investment & Securities evaluated Lotte Information & Communication on the 26th as positive for future stock prices due to the full-scale launch of its electric vehicle charging-related business. However, the investment opinion was downgraded to 'Buy' with a target price lowered to 32,000 KRW.

Lee Sang-heon, a researcher at Hi Investment & Securities, stated, "Starting next year, as the electric vehicle charging-related business is fully launched, the growth potential of the integrated mobility business can become visible."

The researcher explained, "In January this year, Lotte Information & Communication acquired Jungang Control, the second-largest domestic electric vehicle charging manufacturer, which will lead to the full-scale launch of the integrated mobility business. Jungang Control launched EVsis in August, a charging operation platform brand that integrally connects users with apps, PC web, and chargers, aiming to enter the electric vehicle operation business." Accordingly, a foundation has been established for the expansion of charging stations that are easily accessible in urban life, based on capabilities in electric vehicle charging, manufacturing, supply, installation, and maintenance.

Under these circumstances, Lotte Group plans to convert parts of parking spaces in over 350 distribution business sites nationwide into electric vehicle charging spaces. Accordingly, Lotte Group is expected to open more than 13,000 EVsis chargers, mainly fast and mid-speed chargers, in major urban parking lots centered on offline bases by 2025.

The researcher said, "With the acquisition of an electric vehicle charger company, the foundation for the integrated mobility business?from smart infrastructure to operation control and autonomous driving?has been established," adding, "Such growth potential could act as a momentum for the company's stock price increase in the future."

However, he added, "The target price was calculated by applying a target price-to-earnings ratio (PER) of 15.3 times to the 2023 estimated earnings per share (EPS) of 211.7 billion KRW."

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