[Click eStock] "KG Mobility, Future Sales Volume Trends Need to Be Watched"

Hana Securities judged on the 22nd that the monthly and quarterly sales volume trends of KG Mobility should be monitored going forward. No investment opinion or target price was presented.

KG Mobility's sales in the fourth quarter of last year decreased by 27% year-on-year to 745.1 billion KRW, and the operating loss for the same period was 29.9 billion KRW, continuing its deficit. Researcher Song Seon-jae of Hana Securities analyzed, "The increased cost of goods sold ratio due to the decline in sales volume and sales revenue is the highest quarterly level in the past two years."

KG Mobility set its annual sales volume target for this year at 147,000 units, a 27% increase compared to last year. Researcher Song explained, "If the sales target is achieved, the current factory utilization rate of around 60% based on a production capacity of 200,000 units will rise to over 70%, improving profitability through production leverage effects." He added, "However, considering the industry slowdown and the recent price reduction of the Torres EVX, the target appears somewhat aggressive."

He further added, "It is necessary to observe the monthly and quarterly sales volume trends more closely, as they are key factors affecting performance and stock price."