[Click eStock] "IL Science, Steep Earnings Growth Expected Next Year"

[Asia Economy Reporter Hyunseok Yoo] Kiwoom Securities analyzed on the 24th that IL Science is expected to experience steep earnings growth next year. No investment opinion or target price was provided.

IL Science is a lighting solution specialist company that produces and sells LED silicone lenses, LED lighting products, and IoT-based smart lighting systems, which are core optical components of LED lighting products. It developed LED silicone lenses in 2015. The company can provide customized production for clients from design to manufacturing and evaluation of LED silicone lenses, and has secured cost competitiveness by independently developing a mold-free manufacturing process (dispensing technique).

Kiwoom Securities forecasted that sales of LED scalp masks for hair loss prevention will become full-fledged. Jaeil Park, a researcher at Kiwoom Securities, explained, "In December 2018, IL Bio (formerly Mineral Science Institute) was acquired, and based on the self-developed silicone lenses and microcurrent patents, LED scalp masks for hair loss prevention were developed, and the brand ‘Polynic’ was launched last October. The product is being sold using the online distribution network of the subsidiary Ahez, acquired in July, and a sales channel expansion is planned through a contract with home shopping company G."

They also expected an increase in the supply volume of lenses for vehicles. He said, "Since 2017, lens tests for vehicle headlights and tail lights for Hyundai Mobis have been conducted, and in September, registration as a Hyundai Mobis partner was completed. Delivery of indoor central lamps lenses to domestic automakers has also started."

He emphasized, "Vehicle silicone lenses have higher light efficiency and superior vibration durability compared to existing vehicle lenses, and automakers are expanding the application of these lenses to more vehicles. Accordingly, IL Science expanded its factory capacity from 500,000 units per month to about 3 million units per month through factory expansion this year."

Kiwoom Securities projected that IL Science’s sales will reach 48 billion KRW next year, an increase of 83.9% compared to the previous year. Operating profit is expected to turn positive at 4.3 billion KRW. He stressed, "Steep earnings growth is expected next year, driven by increased sales of LED scalp masks for hair loss prevention, increased public construction orders due to the Green New Deal policy, and new sales from automotive parts."