[Click eStock] “Innoxt Advanced Materials, Expected Record High Performance in Q3”

[Asia Economy Reporter Eunmo Koo] DB Financial Investment forecasts that Inox Advanced Materials will achieve record-high performance in the third quarter as demand for smartphone and TV components, which were sluggish in the first half, increases.

According to DB Financial Investment, Inox Advanced Materials posted relatively solid results in the second quarter of this year, with sales of 73.8 billion KRW, down 9.6% from the same period last year, and operating profit of 7 billion KRW, down 30.9%. Researcher Kyu-jin Uh of DB Financial Investment explained in a report on the 28th, "In the second quarter, as the impact of COVID-19 intensified, the smartphone market was sluggish, causing Galaxy S20 series sales to fall short of expectations, and the start-up of LG Display's new OLED TV line in China was continuously delayed. However, demand rebounded due to increased component orders from clients following the global economic reopening after June."

The third quarter is expected to deliver record-high results. Researcher Uh stated, "Smartphone and TV components, which were sluggish in the first half, are expected to see increased demand due to the base effect in the third quarter, leading to record-high performance." He estimated sales to increase by 0.7% year-on-year to 96.9 billion KRW and operating profit to rise by 14.3% to 15 billion KRW.

The investment opinion remains 'Buy,' and the target stock price has been raised to 63,000 KRW. Researcher Uh explained, "Inox Advanced Materials is expected to see a significant recovery in performance in the second half due to increased sales of smartphones and OLED TVs following the global economic reopening. This performance rebound will be reflected in the full year of 2021, renewing record-high results."

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