April 26, 2024

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[THE INVESTOR] AJ Networks will continue to grow especially in the construction equipment rental sector, said KB Investment and Securities on June 19, raising the target price to 9,300 won (US$8.20) from 7,000 won and maintaining a “buy” recommendation. 

Its revenue and operating profit in the second quarter will reach 69.8 billion won and 8.6 billion won, up 21.9 percent and 32.2 percent on-year, respectively, and the equipment rental division’s revenue will surge more than 120 percent, said analysts Kang Tae-sin and Kang Jae-seong. 

Its growth will be across the sectors, though, added the analysts, saying that in addition to steady growth in its core business, earnings from its affiliates such as AJ Rent a Car will rise. Despite the 30 percent hike since the beginning of the year, its stock price remains attractive. 

By Hwang You-mee (glamazon@heraldcorp.com)