"Deutsche Motors, New and Used Cars Both Selling Well"

[Asia Economy Reporter Jang Hyowon] Hanwha Investment & Securities expects Deutsche Motors to continue its growth trend this year by creating synergy with its offline platform, Deutsche Autoworld.

On the 20th, Hanwha Investment & Securities forecasted that Deutsche Motors will maintain stable performance this year. The projected sales for Deutsche Motors this year are 1.74 trillion KRW, operating profit of 48.3 billion KRW, and net profit attributable to controlling interests of 26.6 billion KRW. These figures represent increases of 20%, 8%, and 83% respectively compared to the previous year.

The reason for the performance increase is primarily due to the strong sales of used cars at the Deutsche Autoworld complex. Currently, the average monthly sales volume is 10,000 units, recording a high turnover rate of 100% relative to the number of used cars displayed within the complex and 67% relative to the total inventory held within the complex.

Deutsche Autoworld accounts for approximately 48% of the total used car sales volume of 21,000 units in Suwon City. As it establishes itself as a landmark in the region, it is expected to maintain a steady rate of growth, and the synergy effect originating from Deutsche Autoworld is anticipated to gradually increase.

Accordingly, Hanwha Investment & Securities sees a high possibility that the rebound trend of Deutsche Motors’ stock price will continue. This is due to ▲ the clear potential to highlight improved profitability as the stock market enters a performance-driven phase ▲ the expected visibility of the multi-brand dealer and Deutsche Autoworld expansion strategy ▲ and the growth potential of high value-added businesses through the synergy effect of Deutsche Autoworld.

Kim Dongha, a researcher at Hanwha Investment & Securities, stated, “Considering the growth of high value-added businesses through synergy with Deutsche Autoworld, the increase in recurring profits through strengthening the multi-brand dealer strategy, plans to expand Deutsche Autoworld, and the expectation of continuous shareholder-friendly policies, there is sufficient room for future valuation reassessment.”

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