"JVM Revises Valuation Based on Record Quarterly Performance"

Ebest Investment & Securities Report

[Asia Economy Reporter Gong Byung-sun] Ebest Investment & Securities maintained a target price of 46,000 KRW and a 'Buy' investment rating for JVM on the 1st, considering the significant improvement in profits in the fourth quarter of last year and the continued performance improvement centered on exports in the future, stating that a revaluation of its value is possible.

JVM's sales in the fourth quarter of last year were 30.5 billion KRW, down 3% compared to the same period last year, but operating profit increased by 138% to 5.8 billion KRW. Eun-ae Cho, an analyst at Ebest Investment & Securities, explained, "Operating profit exceeded our estimate of 4.4 billion KRW," adding, "Operating profit improved significantly due to strong high-margin export sales and reduced operating-related expenses."

Exports showed strong performance, achieving the highest quarterly results. JVM's export sales in the fourth quarter of last year were 16.1 billion KRW, up 10% compared to the same period last year. The proportion of export sales reversed domestic sales at 53%. Even when expanding the scope to annual export sales, it increased by 15% compared to the same period last year.

Analyst Cho said, "Looking at the annual export sales growth rate by region, it rose 18% in North America and 17% in Europe compared to the same period last year, showing good performance mainly in Western countries," and forecasted, "The expected export sales proportion this year will be 51%."

The trend of performance improvement is expected to continue this year as well. Analyst Cho said, "The proportion of high-margin export sales is rising, and performance improvement due to operating leverage effects is expected to continue this year," adding, "A revaluation of value is possible due to the full-scale increase in export sales in the future."

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