[Click eStock] "Deoksan Neolux, After Q2... A Momentum-Rich Second Half Performance"

[Asia Economy Reporter Oh Ju-yeon] Mirae Asset Daewoo analyzed that for Duksan Neolux, the second quarter of this year is an unavoidable period of short-term performance decline for display material and component companies due to sluggish utilization rates of client companies, and that a staggered buying strategy waiting for sector demand recovery in the second half and upcoming momentum would be effective.

On the 29th, Mirae Asset Daewoo forecasted that Duksan Neolux's sales in the second quarter of this year would be 26 billion KRW, a 15.2% increase compared to the same period last year, and operating profit would rise by 46.1% to 5.7 billion KRW. Although these figures are lower compared to the previous quarter, considering the impact of COVID-19, it is judged that solid sales and profitability will continue.

They predicted that full-scale performance growth will begin from the second half of the year.

Researcher Kim Cheol-jung explained, "From the second half, performance growth is expected to accelerate, and simultaneously, momentum that can expand sector multiples is anticipated."

Researcher Kim added, "In terms of performance growth, the supply of new products (Green Prime) for iPhone adopting the M10 material structure is expected to begin in earnest. Even without assuming a rapid increase in client companies' utilization rates due to COVID-19-induced demand slump, stable performance growth compared to the same period last year will continue starting with sales of new products."

Sector multiple expansion in the second half is also an anticipated aspect. This is due to the selection of material structure for Samsung Display's QD-OLED line, the launch of Galaxy Fold 2, and the possibility of concretizing Samsung Display's OLED investment direction.

Researcher Kim stated, "Especially, Samsung Display's investment direction is important. It is judged that Samsung Display's OLED-related investments will be concretized during the third quarter, and accordingly, multiple expansions of OLED-related companies including Duksan Neolux could be possible within this year."

This content was produced with the assistance of AI translation services.