The opinion of 'buy' K-car shares was maintained.
K-Car's performance, which has strengths in online channels, is expected to improve as the domestic used car market grows and online transactions increase.
Yuanta Securities maintained K-Car's target price of 35,000 won and investment opinion 'buy' on the 9th.
"The domestic used car market is expanding based on online consumption," Yuanta Securities said. "Like K-car, companies that have online channels that are responsible for quality and can respond quickly will benefit greatly.".
The domestic used car market is expected to reach 39 trillion won as of 2020 and grow 5% annually to form 50 trillion won by 2025.
Currently, used car transactions between individuals account for more than 50%, but demand for companies without uncertainty in vehicle condition and quality has been increasing as non-face-to-face transactions have been preferred since COVID 19.
As a result, traders (B2C) transactions are expected to increase in the future.
"We believe that K Car will grow more than 30 percent in line with the creation of a favorable business environment in 2022," said Yuanta Securities "As U.S. used car makers are also leading the market by expanding online sales and the stock price trend is good, we expect K Car's stock price to rise as well.".
K-Car is expected to generate 1.8563 trillion won in consolidated sales and 78 billion won in operating profit in 2021. Sales are up 40.2% and operating profit is up 106.8% from 2020.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
