[Click eStock] "UIEL, Expecting Increased E-Cigarette Sales in the Second Half"

Stunning Value Research analyzed on the 24th that UIEL's electronic cigarette sales are expected to increase in the second half of this year. No investment opinion or target price was provided.

원본보기 아이콘

Stunning Value Research forecasted that this year's sales and operating profit will reach 400 billion KRW and 20 billion KRW, respectively, representing increases of 20.4% and 130.4% compared to the previous year.

Researcher Namgung Jun explained, "Electronic cigarette sales are expected to increase by 145% year-on-year to 70 billion KRW," adding, "Since the IQOS Iluma One is expected to be globally launched in August this year, electronic cigarette sales in the second half are anticipated to grow further."

He stated, "PMI reached a settlement in February this year regarding the patent dispute with BAT in the U.S. market, enabling the launch of new IQOS products in the U.S. market. In early May, PMI acquired a 14.7% stake in Eastern Company, Egypt's largest tobacco manufacturer. Egypt is ranked as the 7th largest tobacco market globally, consuming approximately 100 billion sticks annually. Through this acquisition, PMI can expand its exclusive territory in Egypt not only in heated tobacco products but also in manufacturing." He continued, "Besides the already secured 70 billion KRW orders for the Japanese market, additional orders from the global market are expected to significantly contribute to UIEL's sales growth."

However, it was anticipated that the mobile phone sector would find it difficult to achieve the same performance as in the first half of the year. He said, "Titanium material was not used in the Z series in the mobile phone segment, and the new foldable phone expected to use titanium material is likely to be produced in small quantities. Considering that inventory will be depleted in the fourth quarter, mobile phone segment sales in the second half are unlikely to match those of the first half."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.