[Click eStock] "Hyundai Livart Expands Sales Channels to Capture B2C Market"

[Asia Economy Reporter Hyungsoo Park] Research Alom analyzed on the 19th that Hyundai Livart is expected to benefit from entering the office furniture business-to-consumer (B2C) market amid the expansion of remote work and non-face-to-face lectures. The stock outlook is 'positive,' with a target price of 28,700 KRW.

Choi Seonghwan, Senior Researcher at Research Alom, explained, "Last year, large-scale investments were made in B2C channels such as offline showrooms and online mall renewals, which increased selling and administrative expenses," adding, "The impact of performance decline due to this will be resolved from the second quarter of this year."

He continued, "Entering the office furniture B2C market and the spread of remote work and non-face-to-face lectures have increased sales of ‘home office’ furniture such as study rooms and home libraries," and added, "As B2C sales increased, operating profit margin recovered to the 3% range in the first quarter."

He predicted that profitability will improve rapidly from the second half of this year.

Researcher Choi said, "We will operate the Yongin Smart Center production plant, in which 140 billion KRW was invested in the second half of this year," and forecasted, "With production capacity (CAPA) expanded more than three times compared to the existing scale, performance improvement is expected."