[Click eStock] "Spigen Korea's Q3 Earnings Better Than Expected... Profit Margin Also Improving"

[Asia Economy Reporter Hyunseok Yoo] IBK Investment & Securities analyzed on the 7th that Spigen Korea's profit margin is improving. No target price or investment opinion was provided.

Geonjae Lee, a researcher at IBK Investment & Securities, said, "Spigen Korea's third-quarter earnings announcement is scheduled to be disclosed through a public announcement at the end of this month or early next month," adding, "Previously, the third-quarter sales and operating profit were expected to be 143.1 billion KRW and 31.1 billion KRW, respectively, representing increases of 71.4% and 163.8% compared to the same period last year, but the actual results are judged to be more than 10% higher than the forecast."

IBK Investment & Securities explained that the reason Spigen Korea's recent stock price has been stagnant is due to concerns about a one-off event. He said, "The expected third-quarter earnings of Spigen Korea have already been disclosed to the market through numerous reports, but some investors believe that the third-quarter results are a one-off effect caused by the export of hand sanitizers by its subsidiary, Spigen Beauty," adding, "Ultimately, there is a persistent concern in the market that the selling point of investors who dismiss the subsidiary effect as a one-off event will become a turning point for the stock price, which is why the stock price is showing a box range movement."

However, he emphasized that attention should be focused on the improvement in profit margins due to the continued growth of the subsidiary. The researcher said, "This is because the improvement in the core business profit margin, which has been overshadowed by the subsidiary's remarkable growth, has not been properly recognized. Spigen Korea has already shown an improvement in the core business profit margin since the first half of the year," adding, "This is expected to become more apparent in the second half of the year and in 2021."