[Click eStock] "Socar: Target Price Raised on Profitability Improvements and Innovation"

"Profitability Maintained Thanks to Socar 2.0 Strategy"

On May 28, DS Securities raised its target price for Socar from 16,000 won to 20,000 won, while maintaining its "buy" investment rating.

Daehyung Cho, a researcher at DS Securities, positively assessed Socar's improved profitability. Cho stated, "Socar has maintained operating profit for seven consecutive quarters," adding, "This is the result of successfully implementing the Socar 2.0 strategy, which focuses on asset reallocation for greater efficiency and maximizing vehicle LTV."

Cho further noted, "If 2025 was the inaugural year of profitability improvement, this year is expected to mark the beginning of front-end market expansion." He added, "This year, the projected revenue of 490.3 billion won and operating profit of 30 billion won are highly visible, and there is potential for upward revisions to these estimates due to the diversification of the pipeline."

Socar is also partnering with Krafton to commercialize autonomous driving technology. Cho commented, "The joint venture APX Mobility, established for autonomous driving commercialization, will be an entity that advances physical AI for vehicles by combining Krafton's AI simulation capabilities with Socar's real-world driving data." He continued, "Going forward, various services based on autonomous driving, such as autonomous car sharing and robot buses, are expected to be provided."

In addition, multiple service expansions, such as mid- to long-term subscriptions, are planned. Cho explained, "Socar intends to expand its subscription service pipeline and roll out new services, such as new car dealerships based on customer data." He analyzed, "In this process, the flexible asset reallocation capability demonstrated through Socar 2.0 is expected to create differentiation."

Cho concluded, "This year, we can look forward to a turnaround in Socar's net profit." He added, "Attention should be paid to Socar, which combines secured profitability with growth potential based on its unrivaled position in the domestic market."

This content was produced with the assistance of AI translation services.