SK Securities said on the 28th that K Car is expected to continue its long-term growth by expanding its market share in the used-car market. It initiated coverage with a Buy rating and a target price of 20,000 won. K Car's closing price the previous day was 16,220 won.
Na Seung-du, an analyst at SK Securities, said, "K Car has built a distinctive brand awareness by advancing its purchase, inventory, and price management systems," and noted, "Based on this, it is maintaining a double-digit market share in the domestic used-car market and is gradually expanding it."
He added, "This year it has been consistently maintaining quarterly revenue growth," and said, "Considering steady quarterly dividends and a high dividend yield, additional premium valuation looks possible going forward."
Na cited the structural growth of the used-car market as K Car's long-term growth driver. With Korea's used-car market expected to record an average annual growth rate of about 5% to 10% through 2030, the burden of buying new cars has increased, the analysis said.
Na said, "The revisit rate to the K Car platform is steadily rising, and it is understood that natural and organic traffic, rather than advertising, is increasing significantly," and pointed out, "As the used-car industry is rapidly shifting from small dealers to organized, platform-based operations, K Car's competitiveness is strong."