Lotte Innovate Expected to Receive 'Valuation Re-evaluation' from Securities Industry as External Data Center Orders Expand

Lotte Innovate is accelerating its corporate structural improvement through the external expansion of its data center design, build, and operation (DBO) business. By recently winning the contract for the 40MW scale outsourced operation of the Ansan Data Center being promoted by IGIS Asset Management, the company is showing signs of 본격적으로 (full-scale) expanding the operational capabilities it has built within the group over the past 20 years into the external market.

Hanwha Investment & Securities has raised its target price for Lotte Innovate to 30,000 won. The securities industry analyzed that the strategy of reorganizing the portfolio to focus on high-profit areas such as data centers and AI while phasing out low-profit businesses is driving performance improvement. In particular, based on the expected performance for 2027, the price-to-earnings (P/E) ratio is at a level of 9 times, which is expected to act as a positive variable for future stock price trends as it is undervalued compared to the industry average of 19 times.

Kim So-hye, a researcher at Hanwha Investment & Securities, stated, “The existing perception that the proportion of revenue from within the group is high will be resolved starting with this external data center order,” adding, “It is expected that the discount margin will gradually narrow.” Overseas orders from the electric vehicle charging subsidiary EVSIS and the physical AI business combining robotics are also cited as mid-to-long-term growth engines.