[Click eStock] "PIMs Highlights OLEDs for Robotics... Turnaround in Full Swing"

원본보기 아이콘

On April 30, Hanyang Securities analyzed that there is growing anticipation for PIMs to expand new growth drivers alongside a recovery in the organic light-emitting diode (OLED) industry. Despite enduring a prolonged downturn in the sector, the company's potential for a rebound in performance is highlighted as new applications, such as automotive displays and robotics, are emerging.

PIMs is a specialized manufacturer of open metal masks (OMM) used in OLED display deposition processes and was listed on the KOSDAQ market in September 2020. Over the past two years, the company recorded operating losses due to a sluggish OLED market and a slowdown in the adoption of automotive OLEDs. However, it is now being regarded as having enhanced competitiveness thanks to industry restructuring.

Junseok Lee, a researcher at Hanyang Securities, stated, "Although the company recorded operating losses over the past two years due to the downturn in the OLED industry and the slowdown in the adoption of automotive OLEDs, this period was not a crisis but rather a phase that provided a premium to survivors." He added, "During the prolonged downcycle, many domestic and overseas OMM competitors scaled back their businesses or exited the market, which has further increased the scarcity value of PIMs, given its proven mass production references and supply capabilities."

As the OLED market has entered a recovery phase, PIMs’ business environment is rapidly improving. Based on its No. 1 OMM market share with a domestic company S, the company began new supplies to domestic company L in the first quarter of this year, thereby securing all major domestic OLED panel makers as customers.

Lee commented, "This year will be the first in which both the recovery of its core business and the expansion of new growth drivers become apparent, marking the first year of a tangible turnaround in the company's performance."

In particular, the expansion of the automotive OLED market is considered a key growth engine for PIMs. With the advent of the Software Defined Vehicle (SDV) era, in-vehicle displays are becoming a core element that determines premium value, going beyond simple information display devices. OLEDs are being rapidly adopted in luxury vehicles due to their excellent color reproduction, capability for curved designs, and suitability for large displays.

Lee explained, "Previously, automotive OLEDs were applied only to a limited number of models, but now commercialization is accelerating, especially in premium sedans and electric vehicles. The shipment volume of automotive OLEDs is expected to grow at a compound annual growth rate of 24% from approximately 3.8 million units in 2025 to 2030." He added, "The increase in the number of automotive OLED-applied models will lead to higher panel shipments, which in turn will directly result in greater demand for OMMs in the deposition process."

Following automotive applications, robotics is also emerging as a new demand source. As humanoid robots become the core devices of physical artificial intelligence, the role of displays is evolving. Displays are no longer just for information, but are developing as 'expression interfaces' that interact with humans.

Lee analyzed, "For robot facial areas, which require curved design, thinness, and low power consumption, OLEDs are better suited than LCDs. If facial OLEDs for robots become commercialized in the future, the company's OMM applications can expand from mobile and IT to automotive, and even further to robotics." He emphasized, "With its already strong OMM supply position within Samsung Display, the company stands out as a direct beneficiary of the expansion of new OLED form factors."

PIMs is currently securing multiple growth momentum factors simultaneously, including the recovery of its core business, acquisition of new clients, growth in automotive OLEDs, and potential application in robotics. Furthermore, recent open-market purchases by the management team are attracting increasing market attention.

Lee assessed, "With the recovery of its core business, entry into large new client bases, growth in automotive OLEDs, potential application in robot OLEDs, and recent management open-market purchases, multiple investment points are being layered. Nevertheless, the current market capitalization remains in the 40 billion won range, suggesting significant room for revaluation as an OMM company with new growth drivers rather than just a simple turnaround story."

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