Hana Securities said on the 18th that HL Holdings is expected to additionally buy back and cancel treasury shares by the end of the year.
At the same time, it kept its investment opinion at "buy" and set the target price at 48,000 won, up 16.9% from before. Based on the previous trading day, HL Holdings' closing price is 41,050 won.
HL Holdings posted revenue of 329.6 billion won and operating profit of 19.8 billion won in the third quarter of this year. Revenue rose 5.2% from a year earlier, and operating profit swung to a surplus from a year earlier.
Song Seon-jae, a Hana Securities analyst, said, "This year's 23.5 billion won in treasury stock cancellations reduced the number of shares from 9.87 million at the end of last year to 9.21 million now," and added, "If an additional 5.7 billion won is purchased and canceled by the end of the year, and the 20 billion won buyback and cancellation planned over 2026–2027 is carried out, the number will decline to around 8.6 million shares as of the end of 2027."
Song said, "The turnaround to an operating profit was largely due to increased sales of genuine parts and electric vehicle (EV) components, and an improved mix, including a higher share of high-margin products in overseas aftermarket (AM) sales."
He added, "The conditions for a rise in corporate value include growth and profitability improvements in the in-house business, higher equity and royalty value based on performance improvement at HL Mando, full-fledged contributions from new businesses such as HL Robotics, and increased dividends per share."