[Click eStock] "Aspllo, Equipment Parts and Module Business Drives Growth... Revaluation Needed"

[Asia Economy Reporter Lee Jung-yoon] NH Investment & Securities announced on the 25th that Asflo's future growth in performance will be driven by its equipment parts and module business, and that a reevaluation of its growth potential is necessary due to business expansion and the possibility of securing new customers.

Asflo's sales in the second quarter of this year amounted to 22.6 billion KRW, a 30.6% increase compared to the same period last year, and operating profit rose by 183.3% to 3.4 billion KRW. The operating profit margin reached 14.8%, achieving the highest quarterly performance.

The increase in product prices due to raw material cost hikes and the expansion of business areas from products used as construction parts in semiconductor FAB processes to the IT equipment market are analyzed as factors contributing to this performance growth. Additionally, it is estimated that out of the second quarter sales, 17 billion KRW came from construction parts and 5.6 billion KRW from equipment parts. Since IT equipment parts have higher profitability than construction parts, profitability is expected to improve as sales of equipment parts increase.

Son Se-hoon, a researcher at NH Investment & Securities, explained, "Asflo has started supplying to global IT equipment leader Company A and is also conducting tests with North American semiconductor equipment companies." He added, "The supply volume to Company A is continuously increasing, and supply to new semiconductor companies is expected by the end of the year."

He continued, "The IT equipment parts market is estimated to be about 5 trillion KRW, approximately 10 times larger than the construction parts market," and said, "As trust with overseas equipment companies builds, supply to domestic equipment companies will also become possible."

It is analyzed that the equipment parts and module business will lead Asflo's performance growth in the future. Sales for this year are projected to increase by 46.7% year-on-year to 86.4 billion KRW, and operating profit is expected to rise by 165.8% to 10.4 billion KRW. For 2023, sales are forecasted at 125.1 billion KRW and operating profit at 20.4 billion KRW.

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