LOTTE Data Communication Company, Steady growth following 'digitization' strategy of group company(Cape Investment & Securities)

[Infostock Daily= Reporter An Hoe Hyun] Cape Investment & Securities said on LOTTE Data Communication Company on the 27th that large businesses such as smart factories and logistics are underway as scheduled, and that the cloud sector can also be expected to grow following the implementation of the 'Digital New Deal' policy. In response, the company began the analysis by offering its investment opinion 'Buy' and target stock price of 50,000 won.

Last year, Lotte Group announced that it will invest 50 trillion won in all business sectors over the next five years. The plan focuses on 'business conversion' and aims to innovate with sustainable strategy and digital transformation.

The demand for digital conversion of all group companies is expected to be a growth opportunity for LOTTE Data Communication Company.

"In the third quarter, a cumulative investment of 1.4317 trillion won was executed, up about 200 billion won from the previous year," Cape Investment & Securities said, adding, "It has been confirmed that demand for digital conversion has been steady."

LOTTE Data Communication Company will support the group's digital transformation by establishing a 'smart ecosystem' that leads to smart factories, smart logistics and smart retail. Starting with Lotte Chilsung's Anseong plant, the smart factory is expected to lead to the Gimcheon plant and continue to expand to manufacturing affiliates.

Reporter An Hoe Hyun ahh@infostock.co.kr