[Click eStock] "DMS, Display Growth and Diversification into Wind Power and Medical Device Businesses Expected"

[Asia Economy Reporter Hyunseok Yoo] KB Securities analyzed on the 2nd that DMS is expected to benefit from the growth of its core display business and diversification into wind power and medical devices. No investment opinion or target price was provided.

DMS is a display equipment manufacturing company established in 1999. It supplies key equipment necessary for LCD and OLED production, such as HDC (High Density Cleaner), Wet Stripper, and PI Coater (Polyimide coating equipment).

Researcher Sangguk Lim of KB Securities stated, "Amid the rise of K-healthcare due to the COVID-19 pandemic and the global Green New Deal policy trend, stable display equipment business along with diversification benefits in wind power and medical devices are expected."

Growth in the display sector is anticipated first. He explained, "Significant growth is expected due to major clients' large-scale investment plans and accelerated OLED transition. In the third quarter, investments from major Chinese clients such as HKC (150K, LCD) and BOE (48K, OLED) are expected," adding, "This will lead to an increase in new equipment orders, and the expansion and acceleration of OLED investments by Chinese clients will result in higher profit margins. This year is expected to be the first year when OLED equipment sales surpass LCD, marking a leap to becoming an OLED equipment company."

He evaluated, "Under the Green New Deal policy, benefits are expected in DMS's medium-sized wind power generator business. The 200KW medium-sized wind power generator developed jointly with Korea Electric Power Corporation (KEPCO) was completed in July. It is estimated that if 30% of the power capacity of 65 self-generation islands under KEPCO's jurisdiction is replaced, there will be demand for about 150 units. Continuous attention should be paid to the expansion of the Korean-style 200KW medium-sized wind power generator."

Researcher Lim emphasized that growth of the medical device subsidiary should also be noted. He said, "Growth of the medical device subsidiary Biol is expected. Its main device, SilfirmX, has obtained both European CE and US FDA certifications following approval from the Ministry of Food and Drug Safety," emphasizing, "Expansion of export volume is expected, and upon completion of listing within the year, DMS's equity value will rise and profitability is expected to improve through Biol's sustained growth."

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