[Click eStock] "Enox Advanced Materials, Stock Price Too Cheap Despite Continuous Upward Revisions of Earnings Estimates"

[Asia Economy Reporter Ji-hwan Park] DB Financial Investment evaluated that the stock price of Innox Advanced Materials is too cheap compared to its earnings as of the 19th. They maintained a 'Buy' investment rating and raised the target price to 70,000 KRW. Despite the recent short-term stock price increase, the earnings estimates continue to be revised upward due to customer and item expansion,

leading to the assessment that the current price-to-earnings ratio (PER) of 11.2 times still indicates an undervalued range.

Researcher Kyu-jin Uh of DB Financial Investment stated, "The fourth-quarter earnings last year are expected to show sales of 140.5 billion KRW and operating profit of 30.3 billion KRW, an increase of 64.4% compared to the previous year." During the same period, operating profit is expected to increase by 151% to 30.3 billion KRW.

Despite the traditional year-end parts inventory adjustment period, it is judged that the inventory adjustment of OLED-related parts will be milder than usual due to factors such as increased supply of panels for LG Display WOLED TVs, strong sales of new iPhones and Samsung Electronics foldable smartphones, and increased sales of small and medium-sized parts to China.

Annual performance is expected to achieve record highs with sales of 485.7 billion KRW and operating profit of 94.7 billion KRW. In particular, the increase in supply of encapsulation materials for large OLED TVs to LGD and the expansion of products and customers for small and medium OLEDs are expected to lead overall growth, with INNOLED segment sales in 2021 increasing by 82.0% year-on-year to 283 billion KRW,

driving total growth.

Researcher Uh predicted, "Due to the strong sales of Samsung Electronics' new foldable smartphones and the expanded application of existing SmartFlex items, the application of new materials following Samsung Display's launch of new QD OLED TVs, and the expansion of large customers for LG Display's WOLED TV panels, next year’s sales are expected to reach 567 billion KRW and operating profit 120.8 billion KRW, setting new record highs."

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