[Click eStock] Seojin System, Stable Growth Expected to Continue... Attractive Valuation

[Asia Economy Reporter Lee Seon-ae] Eugene Investment & Securities stated on the 15th that Seojin System's stable growth is expected to continue, maintaining a buy rating and a target price of 52,000 KRW.

Seojin System's preliminary Q4 2021 consolidated results recorded sales of 160.2 billion KRW and operating profit of 18.7 billion KRW. Sales increased by 92.5% year-on-year, and operating profit surged by 292.2%. The full-year 2021 consolidated results showed sales of 606.1 billion KRW and operating profit of 58.0 billion KRW, up 88.3% and 1082.2% respectively compared to the previous year. Despite the ongoing COVID-19 situation, the company achieved record-high sales and operating profit through business diversification and customer base expansion.

The expected consolidated results for Q1 2022 are sales of 166.1 billion KRW and operating profit of 11.2 billion KRW, representing increases of 23.4% and 21.2% year-on-year, respectively.

Researcher Park Jong-seon of Eugene Investment & Securities forecasted, "Despite Q1 being an off-season, all business divisions are expected to maintain stable growth."

The expectation for continued performance growth in 2022 is based on ① sustained sales growth across all existing business divisions and ② anticipated sales from new container products in the second half of the year.

Researcher Park emphasized, "Currently, Seojin System's stock price is trading at a price-to-earnings ratio (PER) of 8.2 times based on 2022 expected earnings, which is significantly discounted compared to the industry and peer average PER of 16.2 times."

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