[Special Stock] Inox Cheomdan Sosae, Stock Falls 4% on Lower Profit Forecast for Second Half

[Asia Economy Reporter Minji Lee] InnoX Advanced Materials is experiencing a drop of over 4% during trading. This is analyzed to be due to concerns over weak performance in the second half of the year.

At 9:27 AM on the 2nd, InnoX Advanced Materials was down 4.7% to 34,500 KRW during trading. The company's stock price fell as low as 34,300 KRW during the session.

InnoX Advanced Materials recorded an operating profit of 32.238 billion KRW in the second quarter, a 61.8% increase compared to the same period last year. Sales also grew 32% to 142.871 billion KRW. Although the company posted solid results compared to last year, the outlook for the second half is estimated to be unfavorable.

Kiwoom Securities estimated that InnoX Advanced Materials would report third-quarter sales of 149.2 billion KRW and operating profit of 32.1 billion KRW, falling short of market expectations. Hana Securities also predicted the company would enter a profit decline phase from the second half, forecasting sales and operating profit of 134.7 billion KRW and 28 billion KRW, respectively.

Kim Hyunsoo, a researcher at Hana Securities, said, “Reflecting the production cuts by domestic panel makers for OLED TVs and smartphone panels, we are revising down InnoX Advanced Materials’ 2022 sales and operating profit forecasts by 4% and 3%, respectively, and 2023 sales and operating profit forecasts by 6% and 9%, respectively, compared to previous estimates.”

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