Lotte Rental: Sharp Share Price Rise Meets Thin Margins, High Leverage and a Wide Model Range

Thesis

The data supports a picture of a stable, slow-growing business whose share price has moved well ahead of its earnings history. Revenue grew 4.5% in 2025 and operating margin has stayed around 10% to 11% since 2023. Price to earnings has risen from 9.0 at the end of 2025 to 15.7 now, and price to book from 0.7 to 1.2, so much of the gain reflects a higher valuation rather than higher profit. TTM net income of ₩118.4B is below 2025's ₩127.6B. The data does not show investor flows, foreign ownership, short interest or news, so the reasons for the rally cannot be confirmed from it. Recent filings include a CEO change notice (2026-09-01), a shareholders' meeting call, a debt guarantee to a third party and a change in the largest shareholder's holdings, but their details are not in the data.

Business overview

Lotte Rental (089860) is listed on KOSPI and classified under sector 'Other' in the data. It was founded on 2005-10-20 and listed on 2021-08-19. Market capitalisation is ₩1.9T across 36,309,388 listed shares. The CEO is listed as 이장섭. Revenue was ₩2.42T in 2021 and ₩2.92T in 2025, and TTM revenue to H1 2026 is ₩2.98T. The data does not describe individual business lines.

Model estimate of fair value

Bear

₩155,959

+214%

Base

₩380,015

+665%

Bull

₩1,147,364

+2211%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 3.9%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Change in largest shareholder's holdingsOct 13, 2026
• Amended: Shareholders' meeting calledOct 7, 2026
• Investor relations (IR) eventSep 30, 2026
• [Amendment] Decision on Debt Guarantee to Third PartySep 15, 2026
• 주주명부폐쇄기간또는기준일설정Sep 7, 2026
• Shareholders' meeting calledSep 7, 2026
• 대표이사(대표집행임원)변경(안내공시)Sep 1, 2026
• 대규모기업집단현황공시[분기별공시(개별회사용)]Aug 28, 2026
• 5%+ holding reportAug 18, 2026
• Half-year report (Jun 2026)Aug 14, 2026
• 지급수단별ㆍ지급기간별지급금액및분쟁조정기구에관한사항Aug 14, 2026
• Major management matter relevant to investorsAug 11, 2026
• Daily prices up to 2026-10-12
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 22, 2026Update noteNewsLotte Rental: News Reports Point to TPG as New Controlling Shareholder
2. Oct 13, 2026InitiationStart of coverage (300 largest)Lotte Rental: Sharp Share Price Rise Meets Thin Margins, High Leverage and a Wide Model Range