[Infostock Daily= Reporter An Hoe Hyun] IBK Securities raised its target stock price of Halla Holdings from 42,000 won to 50,000 won on the 17th, saying that although its sales declined due to the reorganization of its profit-oriented business structure rather than its appearance, profitability is improving. The investment opinion remained 'Buy'.
"Since the entire group, including its own business, is deeply related to the automobile industry, the sales dependence within the group is relatively high," the company explained, adding, "This could be a weakness in business scalability, which has led to efforts to increase the portion outside the group, resulting in a gradual increase in sales."
"The strategic alliance with mobility platform company 'BeMyCar' will be an opportunity to expand its business through the supply, maintenance and tuning of auto parts at home and abroad," the company also explained, adding, "Not only will the auto parts business, which is connected from its own business to its main affiliates, improve, but the construction business will also maintain solid performance due to high-quality new orders and increased order balances."
"If you look at the stock prices of major affiliates, Mando has risen to a price range above the 2017 level, and Halla also posted high gains," the company said, adding, "Halla Holdings has ample room to rise as it is improving profitability and strengthening its growth momentum."
Reporter An Hoe Hyun ahh@infostock.co.kr
