[Click eStock] Point Mobile's Direction and Growth Potential Remain Unchanged

[Asia Economy Reporter Lee Seon-ae] Yuanta Securities forecasted on the 25th that although the stock price of Point Mobile has not reflected positive factors, a rebound is expected in the future. No investment opinion or target price was provided.

The 2022 performance is estimated at sales of 138 billion KRW (+63.8%, YoY) and operating profit of 21.4 billion KRW (+139.5%, YoY).

Researcher An Joo-won of Yuanta Securities said, "Sales to Amazon are expected to exceed 60 billion KRW, and sales to Casio will also reflect more than 10 billion KRW, resulting in high growth." He added, "In particular, Amazon sales are expected to account for about 50% of U.S. sales based on the mobile network certification received in September 2021, and the supply models will increase to four, leading to significant sales growth." He continued, "New global customers are continuously being added, and the medium- to long-term growth potential remains valid. Due to the recent stock price decline, the valuation based on the expected 2022 performance has dropped to about 13 times, and considering future growth potential, a stock price rebound is expected."

Point Mobile has enhanced its product development capabilities through OEM and ODM supply to global large companies, and since 2009, it has grown into a leading domestic and international PDA company by launching its own brand models.

As of the end of June 2021, Amazon holds a 5% stake in Point Mobile, and according to contract terms, this stake is expected to increase up to 17.7% in the future. The friendly relationship between Point Mobile and Amazon is already proven, but the stock price has not reflected this. Especially, the industrial terminal market is dominated by a few companies, and Point Mobile is attracting various companies based on a diverse product lineup and price competitiveness. Researcher An emphasized, "The company develops 4 to 5 new products annually, and the development cost per unit reaches tens of billions of KRW, making it difficult for new companies to enter the market. With about 50% of sales overseas, the company has secured various overseas clients as well as domestic ones, so it is judged to have sufficient business competitiveness."