[Click eStock] "Enox Advanced Materials, Expected Record High Performance Next Year"

IBK Investment & Securities Report

[Asia Economy Reporter Minji Lee] On the 27th, IBK Investment & Securities maintained a buy rating and a target price of 70,000 KRW for InnoX Advanced Materials, expecting it to record its highest performance next year.

In the third quarter, InnoX Advanced Materials recorded sales of 105.9 billion KRW, a 43.4% increase compared to the previous quarter. It is estimated that sales in all business divisions except INNOSEM increased compared to the second quarter. Operating profit was 19.4 billion KRW, exceeding previous forecasts. Both sales and operating profit reached record highs.

Researcher Kim Unho of IBK Investment & Securities said, “The operation of the Guangzhou facility led to improvements in cost structure and profitability, and due to a combination of factors such as product mix improvement and increased operating rate, the operating profit margin rose sharply compared to the second quarter.”

The downstream industries of InnoX Advanced Materials include representative IT products such as semiconductors, displays, and mobile devices. Significant performance improvements are expected next year as well. By product, it is closely related to the operating rate of large OLED display panels. LG Display’s Guangzhou line added a capacity of 60K/month, and production capacity is expected to expand to 90K/month by the end of the year, enhancing growth potential. Researcher Kim Unho said, “Sales are expected to increase significantly next year,” adding, “With the expansion of the mobile OLED panel market and an increase in foldable volumes, an increase in both new and existing product volumes is expected.”

The stock price is expected to show further upward momentum. Researcher Kim said, “Due to better-than-expected third-quarter results, we are revising upward the forecast for next year,” and “Significant performance improvements are expected next year as well, and the position of the Guangzhou corporation is gradually strengthening within client companies, so strong performance improvements are anticipated next year.”

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