[Featured Stock] Faber Nine Breaks Away from Overlooked Status with Dual Benefits from COVID-19 and Untact... Clear Turnaround

[Asia Economy Reporter Hyungsoo Park] As the number of new confirmed cases of the novel coronavirus infection (COVID-19) continues to break record highs daily, there is a movement to re-evaluate the corporate value of Fabernine.

At 10:26 a.m. on the 22nd, Fabernine was trading at 5,600 KRW, up 5.46%. The stock price, which was trading around 4,500 KRW at the end of last month, has risen by about 25%.

Daishin Securities analyzed earlier this month that Fabernine had been relatively overlooked in the rally of COVID-19 beneficiary stocks. They expected it to benefit from ventilators and the entry into an untact (non-face-to-face) society.

Researcher Han Kyung-rae of Daishin Securities explained, "Fabernine secured growth momentum by jointly producing ventilators with McEyeCS."

As confirmed COVID-19 cases surge, a shortage of ventilators continues in medical sites worldwide. Fabernine is responsible for the exclusive mass production of McEyeCS products.

Researcher Han said, "We signed a production contract for intensive care ventilators (MV2000) with McEyeCS," adding, "Ventilators have a higher sales price compared to raw materials, so profit margin improvement is expected."

He added, "Fabernine has proven its medical device mass production technology by conducting large-scale order production of medical devices with Samsung Electronics and Samsung Medison."

Researcher Han said, "On a consolidated basis this year, we expect sales of 153.7 billion KRW and operating profit of 12.8 billion KRW," and added, "From the second quarter of this year, with the addition of ventilator sales, we anticipate a significant increase in sales in the second half."

He also emphasized, "With the expansion of untact demand, the demand for digital signage products such as kiosks and drive-thru signage is increasing," and noted, "Samsung Electronics held a 27.9% share of the global digital signage market last year, ranking first worldwide."

He continued, "Fabernine Vina, which produces digital signage, achieved sales of 10.5 billion KRW in the first quarter of this year," analyzing, "This is 53% compared to last year's sales of 20 billion KRW."

Researcher Han also stated, "Fabernine has been relatively overlooked in the recent rally of COVID-19 beneficiary stocks," and added, "Since it can benefit simultaneously from ventilators and untact trends, we expect the stock price to rise."