[Click e Stock] "Philoptics, 2020 Performance Turnaround Expected"

[Asia Economy Reporter Minji Lee] Hana Financial Investment judged on the 18th that Philoptics is expected to improve its performance this year due to an increase in new orders. No investment opinion or target price was presented.

Philoptics recorded sales of 140.4 billion KRW last year, an increase of 152.8% compared to the same period the previous year. Operating losses amounted to 14.4 billion KRW, continuing deficits due to the absence of new order momentum after benefiting from investments in 2016 and 2017.

A large-scale turnaround is expected in 2020. Lee Jung-ki, a researcher at Hana Financial Investment, said, "Orders for organic light-emitting diode (OLED) laser equipment are expected to increase significantly due to expanded investments by domestic front-end companies and increased exports," adding, "Expertise has been strengthened following the physical division of the secondary battery business unit."

This year, large-scale display investments by Philoptics' clients will be in full swing. The researcher explained, "We expect an increase in orders due to Samsung Display's investment in quantum dot organic light-emitting diode (QD-OLED), OLED post-processing investments in Vietnam, and diversification of Chinese display companies," and added, "New orders comparable to those in 2017, when orders surged significantly, are possible."

Accordingly, new OLED orders targeting Samsung and China are expected to reach 180 billion KRW. Additionally, as secondary batteries are scheduled to newly supply key assembly process equipment to major clients, benefits from aggressive overseas investments by clients are expected to begin in earnest.

Philoptics' expected sales this year are 261.6 billion KRW, an increase of 86% from last year. Operating profit is estimated to turn positive at 21.2 billion KRW. Researcher Lee Jung-ki said, "This year, a performance rebound is expected as we are solely handling high-growth foldable OLED cutting, UTG, and HIAA equipment."