[Click eStock] "Tobis, Q2 Earnings Surprise... Expectation for Corporate Value Reassessment"

NH Investment & Securities analyzed on the 4th that Tobis recorded a second-quarter earnings surprise, and from the third quarter, the full-scale launch of the automotive electronics business is expected to lead to a revaluation of the company's value. No investment opinion or target price was provided.

Tobis posted consolidated sales of 103.3 billion KRW and operating profit of 7.7 billion KRW in the second quarter. Compared to the same period last year, sales increased by 53.6%, and operating profit turned positive. Sim Eui-seop, a researcher at NH Investment & Securities, said, "We estimate that casino monitor sales in the second quarter were about 65 billion KRW, a 17% increase from the previous quarter," adding, "Since the endemic phase, new product launches and expansion of client companies have continued to drive sales performance."

He analyzed, "Regarding the automotive electronics display business, the operating rate of the China factory slightly increased, reducing losses compared to the previous quarter," and added, "Non-operating losses occurred due to accounting recognition of foreign currency loan valuation losses at the Dalian corporation."

He also expected sales to global clients to increase due to the recovery of the casino industry and continued sales performance. In particular, sales to European clients and IGT, to which new supplies started this year, are also on an upward trend. The external environment has also normalized, and qualitative growth is expected to continue.

Especially, the automotive electronics display business is expected to blossom in earnest from the third quarter. He emphasized, "Starting with the supply of facelift models to global parts companies, the operating rate of the China factory is expected to gradually rise," and added, "The Seocheon factory will also reflect the effects of new expansion from the third quarter, and sequential installation toward domestic clients is anticipated."

He said, "The recently acquired electric vehicle charging solution company Glocord Tech (with a 35.98% stake) is expected to contribute to earnings from the third quarter through consolidated inclusion," and added, "Synergies with Sale High Tech, acquired last year, are also expected in the mid to long term."

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