[Click eStock] "Doosan Bobcat, Beneficiary of Commercial Act Amendment... Target Price Raised to 75,000 Won"

On June 25, KB Securities raised its target price for Doosan Bobcat from 55,000 won to 75,000 won. The company analyzed that Doosan Bobcat is expected to directly benefit from the Lee Jaemyung administration's push to amend the Commercial Act.

Jung Dongik, a researcher at KB Securities, explained the reason for the target price increase, stating, "Since the amendment to the Commercial Act, which adds directors' duty of loyalty to shareholders, was submitted to the National Assembly on June 5, it is expected that Doosan Group will find it difficult to pursue artificial restructuring of its governance structure in the future."

Previously, Doosan Group attempted an artificial restructuring of its governance structure last year, which went against the demands of many investors. Although this was thwarted due to investor opposition and efforts by financial authorities, investors remained concerned about the possibility of similar cases recurring, which, according to KB Securities, led to a valuation discount.

Jung further noted, "It is becoming clear that the new administration is strongly committed to amending the Commercial Act, protecting investors, and resolving undervaluation. As a result, Doosan Group will now have no choice but to secure cash through regular procedures such as increasing dividends."

He added, "This is fundamentally a positive event not only for major shareholders but also for minority shareholders, and even if there is no additional profit growth, it could lead to an increase in ROE and P/B, which could drive up the share price."

Expectations for improved performance in the second half of the year are also supporting the stock price. Jung stated, "From the second half of the year, as policy uncertainty in the United States is expected to ease and demand in Europe is projected to recover due to fiscal execution in infrastructure and the defense industry, gradual improvement in performance is also anticipated."