Daishin Securities stressed on the 10th that Innocean achieved its highest quarterly performance in the third quarter following the second quarter.
Investment opinion 'buy' and target price remained at 90,000 won.
"Provisional sales in the third quarter rose 18% year-on-year to KRW 170 billion and operating profit rose 48% to KRW 39.9 billion over the same period," Daishin Securities said. "Based on the headquarters, sales in the third quarter rose 43% year-on-year to KRW 40.5 billion and overseas sales rose 12% to KRW 130 billion over the same period.".
"The performance continued to improve due to increased sales of Hyundai Motor and Kia Motors in North America, which account for 53% of sales as of 2020," Daishin Securities said. "We recorded the highest quarterly performance in the second quarter and achieved the highest quarterly performance in the third quarter.".
"Operating profit in the fourth quarter will reach KRW 35.8 billion, down 14% from the same period last year due to the reverse base effect in the fourth quarter of last year," Daishin Securities said. "This is also a good performance at the level of pre-19.".
"In particular, as the Genesis lineup expands, brand marketing is being strengthened, and N-brand and electric vehicle marketing are also being strengthened," Daishin Securities said. "We will also strengthen existing marketing such as hydrogen cars and autonomous driving next year.".
In addition, Daishin Securities said, "The dividend payout ratio is 47%, maintaining a high dividend policy following 57% in 2020," adding, "The mid- to long-term dividend payout target is a global average of 40%, but they continue to pay high dividends unrelated to their tendencies in order to increase shareholder value.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
