[Click eStock] "Deoksan Neolux, Expected Over 20% Sales Growth Next Year"

Yuanta Securities Report
Q3 Operating Profit 10.4 Billion KRW... 89% Increase YoY

[Asia Economy Reporter Minji Lee] Yuanta Securities maintained a buy rating and a target price of 47,000 KRW for Duksan Neolux on the 7th, expecting strong performance through next year.

The estimated sales for the third quarter are 37 billion KRW, expected to increase by 31% compared to the same period last year. Operating profit is projected to reach 10.4 billion KRW, an 89% increase during the same period, achieving the highest quarterly performance ever. Kwangjin Kim, a researcher at Yuanta Securities, said, "This was influenced by the increase in facility utilization rates due to Samsung Display's full-scale supply of panels for the iPhone 12 series," adding, "The increase in sales targeting China is also positive."

Strong growth is also expected in the fourth quarter. Although the third quarter is usually the seasonal peak, this year the iPhone launch was delayed by about a month, so Samsung Display's panel supply is expected to be concentrated in the fourth quarter. The estimated sales for the fourth quarter are 39.4 billion KRW, and operating profit is 11.4 billion KRW, expected to increase by 6.4% and 9.8%, respectively, compared to the third quarter.

Duksan Neolux is expected to achieve growth of over 20% next year as well. Next year's sales are projected at 167.3 billion KRW, and operating profit at 46.9 billion KRW, representing increases of 22.6% and 28.8%, respectively, compared to this year. While some express concerns about next year's performance due to the possibility of Samsung Display's reduced position within Apple, growth is expected through the simultaneous adoption of LPTO and Y-OCTA for the iPhone 13 series.

With panel demand expected to exceed 100 million units for the iPhone 13 series, the three major panel suppliers are likely Samsung Display, LG Display, and BOE. If LG Display does not expand further, Samsung Display and BOE are estimated to handle over 80 million units. Researcher Kwangjin Kim said, "Duksan Neolux also supplies Red Host and prime to BOE, so benefits from Apple supply are expected," adding, "The possibility of supplying HTL for QD-OLED mass production in the second half of next year is also an additional growth point."