[Click e Stocks] "Tobis, Undervalued Stock Expected to Experience Rapid Growth"

Kiwoom Securities analyzed on the 24th that Tobis is an undervalued stock expected to experience rapid growth. No investment opinion or target price was provided.

Kiwoom Securities forecasted that Tobis's sales and operating profit for the second quarter of this year will reach 97.4 billion KRW and 4.2 billion KRW, respectively. Compared to the same period last year, sales are expected to increase by 45%, and operating profit will turn positive. Kim Sowon, a researcher at Kiwoom Securities, explained, "The casino monitor division is expected to break its all-time high performance again following the first quarter of this year," adding, "The automotive display division is seeing increased utilization rates at its Chinese factory, and with the start of operations at the new Seocheon factory from June, performance growth is anticipated."

In particular, the second half of this year is expected to see record-high performance due to the seasonal peak and increased market share within client companies. He emphasized, "Expansion of product supply to IGT, the world's second-largest casino slot machine company, is expected," and "With the recent expansion of digital slot machine adoption in Europe, Tobis's sales to Europe are also expected to grow by approximately 109% compared to last year."

Alongside this, improvements in the automotive display business are also anticipated. He stated, "From the third quarter of this year, sales from the new Seocheon factory will be fully reflected, leading to steep performance growth in the second half," and "Although operating losses have continued so far, with increased sales in the second half, operating losses are expected to improve significantly to near breakeven, and from next year, full profit contributions are anticipated."

Furthermore, stable performance is expected from major subsidiaries as well. He explained, "Sale High Tech, which supplies films for secondary battery taping, is expected to benefit in the mid to long term along with increased demand for cylindrical batteries," and "Glocord Tech, a communication controller company for electric vehicle charging whose shares were acquired last May, counts SK Signet, BYD, and CATL as clients, and its results are expected to be fully reflected in consolidated earnings from the third quarter."

He projected that Tobis's sales and operating profit for this year will reach 464.2 billion KRW and 31.1 billion KRW, respectively, representing increases of 41% and 344% compared to the same period last year. He emphasized, "Despite steady stock price increases, Tobis's stock price remains undervalued," and "With momentum from expanding client companies and market share across all divisions, rapid performance growth is expected over several years."

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