[Click eStock] "Socar, Profit Turnaround Expected Next Year... Focus on Resuming Used Car Sales"

NH Investment & Securities evaluated Socar on the 27th, stating that "as a platform operator, a significant rebound in performance is expected next year through economies of scale." The closing price on the previous day was 17,200 KRW.

On the same day, Baek Joon-gi, a researcher at NH Investment & Securities, said, "Socar turned profitable in the third quarter this year without selling used cars for the first time in five quarters," adding, "Although there was a peak season effect, the resumption of used car sales in the fourth quarter will enable continuous improvement in operating profit each quarter going forward."

Socar is expected to see a significant profit improvement following the resumption of used car sales. Total sales next year are projected to increase by 22.3% from this year to 500.8 billion KRW, and operating profit is expected to turn positive at 22 billion KRW. As of the third quarter, Socar owns 24,000 vehicles, and the number of vehicles to be sold next year is estimated at 5,500, which is 22% of the total.

Researcher Baek forecasted, "The car-sharing business will show a full-fledged rebound as the LTV (lifetime value per customer) expands and cost reduction effects from economies of scale continue," adding, "During the off-season, utilization rates will be secured through Socar Plan, and during the peak season, utilization rates will be maximized through car-sharing, maintaining this strategy."

He also said, "With the expansion of the Bureum and one-way services, expected revenue per vehicle will increase," adding, "Currently, Bureum accounts for 15% and one-way for 10% of the services. Recently, the expansion of airport one-way services is expected to greatly enhance user convenience."