[Special Stock] Lotte Information & Communication, 'Group-Level Development', Rises Over 5%
The stock price of Lotte Data Communication Company is showing a strong gain of over 5% on the 30th. As of 2:56 PM that day, Lotte Data Communication Company rose by 2,350 KRW (5.40%) compared to the previous trading day.
According to related industries, Lotte Group is focusing on fostering new growth engines centered around Lotte Data Communication Company, Lotte Biologics, and Lotte Healthcare. In an interview with Japan's Yomiuri Shimbun reported that day, Shin Dong-bin, Chairman of Lotte Group, stated that they have identified four new growth areas including Lotte Data Communication Company and are promoting new businesses accordingly.
On the same day, Lee Chang-young, a researcher at Yuanta Securities, said, "Recently, the stock price of Lotte Data Communication Company surged. The previously undervalued aspects have begun to materialize, but it is still undervalued compared to peer companies," and raised the target price to 64,000 KRW.
He added, "Improved performance is expected in the system management (SM) and system integration (SI) sectors due to Lotte Group's expansion and ongoing digital transformation," and said, "Especially with the acceleration of AI transformation across the entire group this year, the establishment and operation revenue of the AI data platform 'Smartreon' within affiliates will increase." Smartreon is an AI model developed in-house that plans production and ordering schedules for Lotte affiliates and analyzes consumer trends. It is the group’s AI model aimed at contributing to practical productivity improvements such as event attendance forecasting and strategy formulation.
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Oh Kang-ho, a researcher at Shinhan Investment Corp., also analyzed, "The stock price of Lotte Data Communication Company has risen 44% compared to the beginning of the year," and said, "This was influenced by expectations of benefits from continued digital and automation investments within the group companies, alongside stable growth recorded last year."
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