Hana Securities said on the 29th that HL Holdings' stock has become more attractive, helped by improved profitability in its core business and a rise in the equity value of key subsidiary HL Mando. It maintained a "Buy (BUY)" rating and raised the target price to 55,000 won from 48,000 won. The previous session's closing price was 44,750 won.
Song Sun-jae, an analyst at Hana Securities, said, "As the growth and profitability of its own business improve, the equity value of HL Mando and HL D&I is rising," adding, "Stronger shareholder returns driven by the growth of new businesses such as HL Robotics and increased dividends are also positive."
Hana Securities put HL Holdings' appropriate market capitalization at about 496 billion won. Specifically, it reflected 176 billion won for the operating value of the in-house business, 578 billion won for subsidiary equity value, and 359 billion won for royalty value, while subtracting 617 billion won in net debt. Of the total corporate value, HL Mando-related equity and royalty account for the largest share at 78%.
Song also highlighted the growth potential of subsidiary HL Robotics. HL Robotics was established in Sep. 2024, and after its establishment in Sep. last year, it acquired 72.78% equity in French robotics corporations Stanley Robotics in Oct. of the same year.
HL Robotics is currently developing its business around the indoor parking robot "PARKIE" and the outdoor parking robot "STAN." It is running a rental business for logistics companies and public institutions, and is also developing new products such as the patrol robot "GOALE" and the logistics robot "CARRIE."
However, it is still in the red. HL Robotics posted 3 billion won in revenue and a net loss of 18.3 billion won last year. In the first quarter of this year, it recorded 700 million won in revenue and a net loss of 8.6 billion won. Total assets stood at 78.5 billion won and liability at 49.7 billion won, putting the debt ratio at about 173%.
Even so, expectations are high for mid- to long-term growth. Hana Securities presented this year's revenue target for HL Robotics at 9.8 billion won. It projected the outdoor parking business based on STAN will gain full momentum from 2027, and after 2028, revenue growth will accelerate as PARKIE orders increase.
The shareholder return policy is also cited as an investment point. HL Holdings is retiring a total of 49.8 billion won in treasury shares through 2025, cutting the number of shares outstanding from 10.47 million at the end of 2022 to 9.08 million as of the first quarter of this year. The company plans to pursue an additional 20 billion won in treasury share purchases and cancellations in 2026–2027. As a result, the number of shares outstanding is expected to fall to about 8.63 million in 2027.
Dividend increases are also continuing. HL Holdings decided on an interim dividend of 1,100 won per share on the 11th. If the year-end dividend remains at a similar level, Hana Securities estimated the annual payout at 2,200 won, up about 10% from last year. Based on the current share price, the expected dividend yield is about 4.9%. Including treasury share cancellations, the total shareholder return yield is estimated to reach 7.4%.