[Click eStock] "Deoksan Neolux, Undervalued Stock Despite Record High Earnings"

[Asia Economy Reporter Park Jihwan] Cape Investment & Securities maintained a 'Buy' rating and a target price of 40,000 KRW for Deoksan Neolux on the 11th, stating that despite record-high performance, the stock is undervalued.

On the day, Park Seongsun, a researcher at Cape Investment & Securities, said, "The third quarter of this year recorded record-high performance due to the launch effect of the iPhone 12," and added, "Since the iPhone launch was delayed by one month, the volatility of the fourth quarter's performance is also expected to be low."

Third-quarter sales and operating profit were 40.6 billion KRW and 11.1 billion KRW, respectively, increasing by 43.7% and 43.6% compared to the previous quarter.

It is analyzed that this is due to the start of production of iPhone 12 OLED panels and the increase in Samsung Electronics-bound volumes such as Galaxy Note20 and Fold2, which led to a rise in Samsung Display's operating rate compared to the previous quarter.

Next year, demand is expected to continue with mass production of QD-OLED panels, recovery of the smartphone market, and expansion of OLED panel conversion by smartphone manufacturers in the Greater China region.

Researcher Park Seongsun said, "Next year's performance is expected to be sales of 169.1 billion KRW and operating profit of 45.5 billion KRW, which are increases of 22% and 26%, respectively, compared to this year."