[Featured Stock] Lotte Rental, Soaring Then Plunging After Record High, Continues Rising for Two Days

After hitting a 52-week intraday high on the 9th and then plunging, Lotte Rental has continued its upward trend for the second consecutive day.

As of 9:56 a.m. on the 11th, Lotte Rental is trading on the KOSPI at 31,400 KRW, up 800 KRW (2.61%) from the previous close.

On the 9th, Lotte Rental reached a 52-week intraday high of 35,950 KRW but reversed course and closed down 11.39% at 29,550 KRW. It then rose 3.55% on the 10th and has maintained its upward momentum through today.

On the 6th, Lotte Rental announced that it signed a memorandum of understanding (MOU) with Hong Kong-based private equity firm Affinity Equity Partners to acquire a 56.2% stake. The acquisition is valued at approximately 1.5792 trillion KRW at 77,000 KRW per share. Affinity Equity Partners currently owns SK Rent-a-Car, the second-largest player in the rental car industry.

The securities industry is expressing optimism. Jaeil Lee, a researcher at Eugene Investment & Securities, stated, "Affinity is expected to secure economies of scale in the rental business by acquiring the top two rental car operators in Korea and exert dominance in the used car sales business. Lotte Rental is expanding its business scope beyond simple used car sales to include used car rentals and used car trading, aiming to achieve a long-term return on equity (ROE) of 15% and maximize the value of purchased vehicles."