[Click eStock] "Doosan Solus, Growth Outlook in OLED and Battery Sheet Sectors"

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained a buy rating and a target price of 32,000 KRW for Doosan Solus on the 13th, expecting growth in the organic light-emitting diode (OLED) and copper foil battery sheet sectors.

In the fourth quarter, Doosan Solus recorded sales of 70 billion KRW and an operating profit of 10.2 billion KRW, up 19% and 34% respectively compared to the same period last year.

Researcher Hyunsoo Kim explained, “The copper foil segment, which accounts for 60% of sales, saw a continuous increase in the sales proportion of 5th generation (G) and high-end copper foil for semiconductors, resulting in growth in both shipment area and profitability. In the OLED materials sector, Samsung Display’s operating rate remained high due to Apple’s increased iPhone production in October, and Chinese panel makers’ new line operating rates rose, showing steady growth.”

Although costs increased during the installation of a new line in Hungary for the battery copper foil segment, full-scale mass production is expected to begin in the third quarter as planned. Dividend income tax on dividends received from the Luxembourg copper foil subsidiary was reflected as non-operating expenses in the fourth quarter, resulting in net profit being lower than expected.

This year, the company is expected to achieve sales of 335.9 billion KRW and an operating profit of 44.8 billion KRW, increasing by 28% and 17% respectively compared to the same period last year.

In the battery copper foil sector, amid limited capacity expansions by Japanese battery copper foil companies, Doosan Solus is expected to benefit from excess demand due to a sharp increase in shipments by major cell makers, with mass production starting in the second half of the year. In the OLED materials sector, Doosan Solus, which monopolizes the aFTL material market during the global increase in OLED shipment areas such as foldable smartphones and OLED TVs, is expected to benefit.

Researcher Hyunsoo Kim stated, “The timing of sales contribution from the battery copper foil segment is expected to be earlier than anticipated,” adding, “With the continued upward trend of the battery copper foil segment and OLED companies, Doosan Solus’s stock price is also expected to rise.”