NH Investment & Securities said on the 22nd that a valuation re-rating is underway for SL Corporation as auto parts makers expand into Robotics. It kept a "Buy" rating and raised the target price to 54,000 won from 44,000 won. The previous trading day's closing price of SL Corporation was 43,150 won.
Researcher Ha at NH Investment & Securities said, "SL Corporation supplies leg assemblies for global Robotics quadruped robots and indicator lamps for logistics robots," and "it is also delivering lidar and battery pack assembly (BPA) to domestic Robotics companies."
He added, "It plans to expand its business scope to Humanoid Robot in the future," and said, "the accumulation of references for supplying Robotics parts is expected to serve as a factor for a revaluation of corporate value."
Ha judged that from the fourth quarter of this year (Oct.–Dec.), as new vehicle launches continue, a full-fledged improvement in results will emerge. Ha estimated that in the fourth quarter of this year, SL Corporation will post sales of 1.2646 trillion won and operating profit of 48.2 billion won. Those are increases of 2.2% and 17.9%, respectively, from a year earlier.
Ha said, "In Korea, results may be somewhat sluggish due to fewer business days from the October holidays, but a recovery in sales in North America and India will drive performance," adding, "in North America, the base effect will ease following the single-line shutdown of the K3 in Mexico, and in India, the GST overhaul will have a positive effect."
Ha continued, "From the fourth quarter, clients will begin launching new models, continuing top-line growth," and said, "as the refund of parts tariff from clients ramps up, profitability will gradually improve."