Kiwoom Securities analyzed on the 13th that Doosan Bobcat's acquisition of Motrol, a hydraulic parts company for heavy equipment, will have a limited short-term impact on corporate value.
Doosan Bobcat held a board meeting the day before and decided to acquire 100% of Motrol shares for 246 billion won. The company will finalize its acquisition of Motrol in September after a business combination review by the Fair Trade Commission. Panel Excavator Sany
As Motrol's hydraulic parts begin to be applied to small excavators, vertical coupling synergy is expected to occur due to the increase in the proportion of Motrol parts in Doosan Bobcat's small construction machinery products.
In addition, sales and profit growth are expected as the scope of product coverage expands from excavator parts, which were previously major products, to loaders and industrial vehicles. From Doosan Bobcat's point of view, it is expected that the diversification of raw material sources will have the effect of stabilizing production.
However, due to the high proportion of Chinese companies among Motrol's major customers, the profitability improvement effect on the company is expected to be insignificant at a time when China's demand for construction machinery is slow to recover. After completing the acquisition of Motrol, earnings are expected to be reflected from the fourth quarter of this year.
"Doosan Bobcat has about 1.8 trillion won in cashable assets as of the first quarter of this year," said Lee Han-gyeol, a researcher at Kiwoom Securities. "We will continue to seek additional M&A opportunities for non-organic growth in advanced markets such as North America even after the acquisition of Motrol."
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