'Undervalued Compared to Competitors' CNTOOS Seongjin, Inflow of Low-Cost Purchases... Growth Alongside the Importance of Gonggi Play

C&T Seongjin Newly Listed on KOSDAQ Market
Own Brand 'Aere' Approaches 50% Profit Margin... Maintained Even After COVID-19
Diversifying Business Areas Based on Air Filters

[Asia Economy Reporter Hyungsoo Park] CNTOOS Seongjin is attempting a rebound. On the first day of listing, the stock price fell to 26,300 KRW in the early session but reduced the decline and rose back near the opening price.

As of 11:12 AM on the 28th, CNTOOS Seongjin is trading at 31,800 KRW, up 0.32% from the opening price.

CNTOOS Seongjin started trading at 31,700 KRW, down 0.01% from the public offering price of 32,000 KRW. Due to the sharp drop in the KOSDAQ market, the stock price fell to 26,300 KRW in the early session. Since then, buying interest at the low price has come in, narrowing the decline.

CNTOOS Seongjin produces MB fabric by extrusion spinning using thermoplastic polymers such as polypropylene (PP) and manufactures various air filters and industrial and healthcare masks.

Jongseon Park, a researcher at Eugene Investment & Securities, explained, "CNTOOS Seongjin is a strong player in the domestic air filter market, having secured original technology for high-performance nonwoven MB (melt Blown) capable of filtering ultrafine dust," adding, "The air purifier filters have secured major domestic air purifier companies as clients, maintaining stable growth."

He continued, "Based on long experience, they have over 100 types of air filters for air purifiers, vehicles, vacuum cleaners, etc.," and added, "They have achieved a 58% market share in the domestic market."

Furthermore, he emphasized, "They are promoting new businesses such as water treatment filters and air solution businesses," and "The home water purifier market is being jointly developed with clients targeting overseas markets such as China and Malaysia."

He analyzed, "The public offering price of 32,000 KRW corresponds to a price-earnings ratio (PER) of 6.5 times based on this year's expected performance," and "This is a 36.1% discount compared to the average PER of 10.2 times on a trailing twelve months basis for similar domestic companies as of the third quarter of last year."

Researcher Park said, "With masks becoming a daily necessity, the mask market is expected to be maintained even after COVID-19," and "They have established production infrastructure domestically and overseas, possessing price and technological competitiveness."

CNTOOS Seongjin owns the mask brand 'aer'. By successfully launching its own brand aer masks, it rose to number one among mask brands on Naver Shopping. Seungdoo Na, a researcher at SK Securities, analyzed, "The newly introduced aer mask by CNTOOS Seongjin maintains KF94-level filter effectiveness while being easy to breathe through, gaining word-of-mouth popularity," and "mask-related sales, which were about 12 billion KRW in 2019, exceeded 80 billion KRW as of the third quarter of last year, with operating profit margin approaching about 50%."

By expanding the B2C business, they plan to enter various business areas based on air filters. They are exporting through overseas clients. Industrial masks are replacing the domestic 3M market, increasing market share.

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