[Click eStock] "Lotte Information & Communication, Leveraging Electric Vehicles, Metaverse, and Autonomous Driving as Growth Engines"

Yuanta Securities "Maintain Lotte Information & Communication Target Price at 55,000 Won"

[Asia Economy Reporter Gong Byung-sun] Lotte Information & Communication has entered the electric vehicle charging business, metaverse platform business, and autonomous shuttle bus sector as growth momentum.

On the 4th, Yuanta Securities maintained a 'Buy' investment rating and a target price of 55,000 KRW for Lotte Information & Communication. The previous closing price was 36,400 KRW.

Lotte Information & Communication has ventured into the electric vehicle charging business. The sales related to electric vehicle charger manufacturing of Jungang Control, acquired by Lotte Information & Communication, are expected to increase by 70 billion KRW annually. In fact, the electric vehicle charger market is one of the markets expected to grow in the future. The electric vehicle charger operation market is estimated to be about 80 billion KRW based on 200,000 electric vehicles. The Ministry of Land, Infrastructure and Transport expects annual revenue of about 450 billion KRW in 2025 based on approximately 1.13 million pure electric vehicles. Yuanta Securities predicted that about 100 billion KRW of this revenue will be generated by Lotte Information & Communication.

It is also challenging the metaverse platform business. The fields expected to grow in the metaverse market are commerce, advertising, gaming, and entertainment. Lotte Group has announced plans to utilize the metaverse in duty-free business and shopping sectors, and it is anticipated to be introduced in model houses for newly supplied apartments, metaverse cinemas, cards, and capital in the future. The entire metaverse demand of Lotte Group is handled by 'Calibers,' a 100% subsidiary of Lotte Information & Communication.

It has also entered the autonomous shuttle bus sector. Next-generation intelligent transportation system (C-ITS) technology related to autonomous driving refers to vehicle control technology that recognizes and judges real-time traffic information sent to traffic lights and various traffic facilities, rather than signals received from cameras or LiDAR. Changyoung Lee, a researcher at Yuanta Securities, predicted, "It will become a core content of the smart city business promoted by Lotte Information & Communication in the future."