[Click eStock] Point Mobile, Clear Direction and Fundamentals

by Lee Seonae

Published 22 Dec.2021 07:32(KST)

[Click eStock] Point Mobile, Clear Direction and Fundamentals

[Asia Economy Reporter Lee Seon-ae] Hana Financial Investment analyzed on the 22nd that Point Mobile has a clear direction and there are no issues with its fundamentals. However, it did not provide an investment opinion or target price.

Point Mobile is the No. 1 domestic company in the industrial PDA sector and has strengthened product competitiveness through OEM/ODM supply to global clients. Since 2013, it has also been producing and delivering its own brand. As of the cumulative third quarter, the sales proportion of its own brand reached 94.1%, and overseas sales accounted for 83.3%, making it a global export-driven company. The global market size of industrial PDAs was 43.5 trillion KRW in 2020, and since they are used in various industries such as retail, logistics warehouses, manufacturing, transportation and logistics, and e-commerce, market expansion is expected to continue.

Choi Jae-ho, a researcher at Hana Financial Investment, said, "Accordingly, Point Mobile is continuously receiving orders not only from domestic customers but also from global clients through product competitiveness such as reasonable pricing and a diverse product lineup, and sustained growth is expected from a mid- to long-term perspective."

Point Mobile’s performance is expected to continue growing through Amazon sales. Point Mobile has signed a large-scale industrial PDA supply contract worth a total of 200 million USD over 8 years with Amazon. The number of Amazon supply models has increased from the existing two to three with the recent addition of the ring scanner ‘PM5’. One of the main supply models, the mobile computer ‘PM85’, obtained LTE network certification from the US carrier Verizon last September and is currently understood to have completed internal certification within Amazon. Therefore, it is expected to contribute to significant sales growth starting next year. Sales to Amazon, which were only 2.8 billion KRW in 2019, recorded 8 billion KRW in 2020, and are projected to reach 22.5 billion KRW in 2021. The growth rate from 2019 to 2021 is 183%. Due to the rapid increase in sales to Amazon, the total 200 million USD supply contract over 8 years is expected to be completed ahead of schedule.

Point Mobile’s expected performance for 2021 is sales of 77.2 billion KRW (+57.9% YoY) and operating profit of 7.2 billion KRW (+6,154.2% YoY), and for 2022, sales of 134.9 billion KRW (+74.6% YoY) and operating profit of 20.2 billion KRW (+179.0% YoY) are projected.

Researcher Choi said, "In addition to Amazon, we are continuously securing new global clients, such as signing a supply contract worth approximately 15 billion KRW with Japan’s Casio last September," and added, "Based on the expected 2022 performance, the price-earnings ratio (PER) is 13 times, which holds valuation attractiveness compared to global peers."