[Click eStock] "Deoksan Neolux, Accumulating Shares Targeting the Second Half of the Year... Target Price Up"

[Asia Economy Reporter Oh Ju-yeon] NH Investment & Securities analyzed on the 16th that although Duksan Neolux's second-quarter earnings decline is inevitable, the improvement in performance in the second half of the year is expected to be significant, and buying targeting this is still valid. Accordingly, the investment opinion was maintained as 'Buy' and the target price was raised to 46,000 KRW.

Duksan Neolux's second-quarter earnings this year are expected to decrease compared to the previous quarter as anticipated. Sales are projected at 26.8 billion KRW and operating profit at 5.9 billion KRW, down 16% and 14% respectively from the previous quarter. This is interpreted as due to a 24% decrease in OLED panel shipments by domestic customers in the second quarter compared to the previous quarter, and a reduction in OLED material orders from Chinese panel customers (influenced by pre-purchases in the first quarter).

However, the performance momentum in the second half of the year is expected to strengthen. NH Investment & Securities estimated that Duksan Neolux's sales and operating profit in the second half will increase by 21% and 34% respectively compared to the first half.

Researcher Go Jung-woo explained, "This is because new smartphone launches by major set manufacturers in the second half, the role of the company as a supplier of OLED panels to customers, and the expansion of OLED material usage are expected," adding, "In particular, some OLED materials are expected to have a high customer share, which will positively impact performance."

Currently, risks such as increased LCD supply from China and the absence of new OLED investments by Samsung Display are affecting the performance of domestic display companies, but Duksan Neolux is relatively free from these risks and is expected to continue stable high earnings growth compared to other panel and equipment companies.

Researcher Go diagnosed, "This is because the OLED material market growth rate is higher, and based on a solid OLED material market dominance and a diversified customer base, it will maintain a competitive advantage in the material market for a long time."

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