[Click eStock] "Lotte Rental Below IPO Price, Multiple Stock Price Increase Expected This Year"

[Asia Economy Reporter Ji Yeon-jin] Hanwha Investment & Securities announced on the 15th that it expects Lotte Rental's stock price to continue rebounding as momentum persists throughout the year with strong performance in the first half and new business ventures in the second half, raising the target price from 50,000 KRW to 75,000 KRW.

Kim Dong-ha, a researcher at Hanwha Investment & Securities, stated, "Considering the stable growth trend of long-term rental cars, continued improvement in performance due to strong results in the used car segment, and the full-scale launch of the B2C (business-to-consumer) used car business next year, it is possible to enhance corporate value."

Lotte Rental's consolidated first-quarter results are expected to show sales of 652.2 billion KRW, a 13% increase compared to the same period last year, and operating profit of 67.6 billion KRW, up 38%. Net profit attributable to controlling interests is projected to increase by 47% to 28.9 billion KRW (47%), exceeding market expectations (operating profit of 65.3 billion KRW). This is due to increased demand for long-term rental cars resulting from short waiting periods, improved profitability in the used car segment due to price increases, and strong performance in the general rental business.

Researcher Kim said, "In the second half of this year, stock price multiple increases are expected due to entry into the used car market, product competitiveness, supply stability, the potential success of the online platform, and the listing of Socar."