[Click eStock] "Enox Advanced Materials, OLED Material Performance Exceeds Expectations"

Operating Profit Margin 20% with Sales Growth and Structural Improvement
New Business Electric Vehicle Thermal Explosion Protection Film Equipped with 'Growth Potential'
Stock Price at Historical Low Compared to Corporate Value

NH Investment & Securities analyzed on the 2nd that Inox Advanced Materials' stock price is at a historical low compared to its intrinsic corporate value due to a prolonged price adjustment. Accordingly, it maintained the target stock price at 38,000 KRW, which is 30% higher than the current price.

Inox Advanced Materials is a semiconductor and display materials company. It operates three business divisions: InnoLED, which produces organic light-emitting diode (OLED) display materials; InnoSEM, which manufactures semiconductor packaging materials; and SMARTFLEX, which supplies circuit materials.

As display companies, which are clients, generally experience a decline in panel shipments and enter inventory adjustments, demand for materials is also showing a long-term weakening trend. However, in the case of Inox Advanced Materials, OLED material sales are increasing faster than expected due to recent increases in TV and smartphone shipments by its clients.

Lee Gyu-ha, an analyst at NH Investment & Securities, stated, "As OLED TV sales have bottomed out and are increasing again, Inox Advanced Materials has been delivering better-than-expected performance since the beginning of the year," adding, "The annual operating profit margin is approaching 20%, and the effects of business structure changes are emerging through the sale of high value-added products and cost control."

The analyst also said, "The stock price is at a historical low due to concerns about the secondary battery materials business, which has not even started yet," and forecasted, "In the mid- to long-term, the OLED material customer base will diversify to Chinese companies and the product lineup will expand, continuing the growth trend."

He analyzed, "The electric vehicle thermal runaway film segment, which is highly likely to receive new business approval in the second half of the year, will also continue its steep growth," and added, "Assuming materials are supplied for 100,000 electric vehicles, there is an effect of approximately 100 billion KRW in sales expansion."

He further added, "The recent repurchase of treasury shares worth a total of 15 billion KRW to enhance shareholder value will also have a positive effect on the stock price."

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