[Click eStock] "HectoInnovation Achieves Highest Quarterly Sales"

On the 10th, Eugene Investment & Securities analyzed that Hecto Innovation continued its growth trend by achieving the highest quarterly sales in the first quarter of this year.

Park Jong-sun, a researcher at Eugene Investment & Securities, stated in a report on the same day, “Hecto Innovation's consolidated sales and operating profit for the first quarter of this year were 69.6 billion KRW and 10.2 billion KRW, respectively, representing increases of 12.8% and 63.6% compared to the same period last year,” adding, “While sales were at a similar level to market expectations, operating profit exceeded expectations by more than 30%, delivering an earnings surprise.”

Researcher Park said, “The positive aspect of the first-quarter performance is that the company achieved the highest quarterly sales, continuing its steady growth,” explaining, “This growth was driven by the headquarters of Hecto Innovation as well as Hecto Financial, whose sales increased by 11.7% and 24.8% respectively compared to the same period last year.”

He added, “Despite a significant increase in labor and marketing expenses due to entry into new businesses to secure future growth engines, profitability improved compared to the same period last year, which is positive,” and forecasted, “Our estimated second-quarter consolidated results are sales of 69.4 billion KRW and operating profit of 7.9 billion KRW, representing increases of 5.6% and 27.2% respectively compared to the same period last year, indicating continued performance growth.”

Furthermore, he said, “The current stock price is trading at a price-to-earnings ratio (PER) of 5.6 times based on this year's earnings, which is significantly discounted compared to the industry average PER of 16.2 times,” and projected, “With stable performance growth of the headquarters and subsidiaries, along with expectations for expansion into new businesses through continuous M&A, the stock price is likely to turn upward.”

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