[Click e-Stock] "Hecto Innovation in Undervalued Range"

Yuanta Securities stated on August 8 that Hecto Innovation is currently undervalued relative to its performance.

In the second quarter of this year, Hecto Innovation posted sales of 91.8 billion KRW and operating profit of 13.4 billion KRW. These figures represent increases of 17.7% and 19.5%, respectively, compared to the previous year.

Kwon Myungjun, a researcher at Yuanta Securities, said, "In the first half of this year, the company achieved a consolidated operating profit of 25.15 billion KRW," adding, "Even if we simply add the results for the second half, the annual operating profit will exceed 50 billion KRW." He further noted, "There are multiple factors that suggest the company's performance in the second half will be better than in the first half."

He emphasized, "On a separate basis, the accumulated operating profit for the first half was 15.16 billion KRW, which, when annualized, exceeds 30 billion KRW." He added, "The sum of cash-equivalent assets of 41.7 billion KRW and investment assets of 129.7 billion KRW amounts to 171.4 billion KRW on a separate basis."

Kwon assessed, "Even when considering both separate and consolidated figures, the stock price remains in an undervalued range," and analyzed, "We expect both the main business and subsidiaries to grow in the second half of the year."

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