[Click eStock] "DMS, Growth Driven by Major Client Investments... Rising Expectations for Green New Deal"

[Asia Economy Reporter Hyunseok Yoo] KB Securities analyzed on the 26th that DMS is expected to continue growing due to major clients' large-scale investment plans and the acceleration of organic light-emitting diode (OLED) transition. No investment opinion or target price was provided.

DMS is a company supplying core equipment for display production, including HDC (high-density cleaning equipment), Wet Stripper (wet etching equipment), and PI Coater (polyimide coating equipment). In the third quarter of this year, it recorded sales of 62.2 billion KRW and an operating profit of 9.7 billion KRW, representing increases of 28.8% and 54.2% respectively compared to the same period last year.

Researcher Sangguk Lim of KB Securities said, "Strong performance was recorded due to continued LCD and OLED investments by major clients such as China's BOE and CSOT," adding, "Net profit sharply declined due to foreign exchange valuation losses."

He forecasted that DMS's growth will continue. Researcher Lim explained, "Growth is expected to continue with major clients' large-scale investment plans and the acceleration of OLED transition. The expansion and acceleration of OLED investments by domestic and Chinese clients will lead to increased profit margins," and added, "The years 2020 to 2021 marked the first year when OLED equipment sales surpassed LCD, signaling a leap toward becoming an OLED equipment company."

Benefits from the Green New Deal are also expected. He evaluated, "Benefits from the medium-sized wind power generator business related to the Green New Deal are anticipated. The 200KW medium-sized wind power generator, developed jointly with Korea Electric Power Corporation, was completed in July," and added, "Upon completion of technology transfer, benefits are expected from replacing power generation facilities on domestic self-generating islands and remote areas."

He emphasized that the growth of subsidiaries should also be noted. He said, "The growth of the medical device subsidiary Biol is positive," adding, "The main device, SilfirmX, has obtained both European CE and U.S. FDA certifications following approval from the Ministry of Food and Drug Safety, and export volume expansion is expected." He further added, "The listing scheduled for today (IBKS No. 11 SPAC) is expected to lead to improved performance and increased value of DMS."

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