[Click eStock] "SWY, Focus on Improving Performance in Core Business Segments"

[Asia Economy Reporter Park Ji-hwan] SangSangIn Securities announced on the 12th that SWY is attracting attention as a turnaround stock in the building exterior panel industry due to a clear improvement in the performance of its core business sectors. The investment opinion was newly presented as 'mid- to long-term stock price increase,' and the target price was set at 4,500 won.

Kim Jang-yeol, a researcher at SangSangIn Securities, stated, "With the closure of loss-making business sites and restructuring of subsidiaries completed last year, cost savings of about 4 billion won are being reflected from this year." He added, "As the color steel sheet market is booming, sales growth in the 50 billion won range is expected with the resumption of color steel sheet production." Deck plates, which previously replaced plywood formwork as building materials, are expected to recover and enter a normal trajectory, with growth accelerating from the second half of this year through 2022.

SWY recorded sales of 310 billion won and a loss of 12.1 billion won last year, but analysis suggests a big turnaround is clearly underway this year. The improvement in the sandwich panel mix focused on high value-added products, cost reductions from restructuring effects, and performance growth from internalization and external sales of color steel sheets are expected to contribute. Researcher Kim Jang-yeol forecasted, "Sales will reach 370 billion won, and operating profit will be in the early 20 billion won range," adding, "An operating profit margin (OPM) of about 6% is expected, marking the highest operating profit ever."

Next year, sales growth of about 10% compared to the previous year is expected due to high growth in deck plates and stable growth in sandwich panels. Researcher Kim emphasized, "Sales will rise to 410 billion won, and the operating profit margin is also expected to sustain growth above 6%."

The plan for the KOSDAQ listing of SW Steel Tech, a subsidiary engaged in the deck plate business (62% stake), was also viewed positively. Researcher Kim stated, "Applying a price-earnings ratio (PER) of 10 times to the average of this year's and next year's estimated performance?sales of 390 billion won and OPM of 6%?we present a target price of 4,500 won and an investment opinion of mid- to long-term stock price increase."

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