[Click eStock] Dong Sung Fine Tec, Order Backlog Is Solid but...

[Asia Economy Reporter Lee Seon-ae] Shin Young Securities announced on the 18th that it maintains a buy rating and a target price of 13,500 KRW for Dongsung FineTec. The target price was calculated by applying a target multiple of 2.8 times to the estimated net asset value for 2022.

Researcher Eom Kyung-ah of Shin Young Securities explained, "The possibility of expansion by the cryogenic insulation material manufacturing company remains a factor that could raise future valuations, but it is difficult to apply at the current level," adding, "The target multiple of 2.8 times corresponds to the upper multiple in 2021 when raw material prices rose rapidly."

As of the end of the first quarter, Dongsung FineTec holds an order backlog of 959.6 billion KRW. Considering that the annual sales amount is around 400 billion KRW, it is judged to have more than two years' worth of orders.

Researcher Eom emphasized, "Although the order backlog is solid, more performance needs to be recognized for the valuation ceiling to rise."

Annual sales this year are expected to increase by 13.5% to 41.2 billion KRW. However, operating profit is projected to decrease by 51.1% from the previous year to 14.7 billion KRW.

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