[Special Stock] Tirayutek, Soaring Profits from Secondary Battery and Semiconductor Booms... Secures Clients like SK, Samsung, and LG

[Asia Economy Reporter Yoo Hyun-seok] TIRAYUTECH is showing strong performance. Securities firms' forecasts that operating profit will surge this year appear to have influenced the stock price.

As of 10:03 AM on the 6th, TIRAYUTECH was trading at 14,800 KRW, up 6.47% (900 KRW) compared to the previous trading day.

On the same day, SK Securities estimated that TIRAYUTECH would achieve sales of 45.5 billion KRW and operating profit of 8 billion KRW this year. This represents an increase of 29% and 3900%, respectively, compared to last year's estimated performance.

Researcher Seo Chung-woo of SK Securities explained, "The growth in performance that began with the resumption of projects delayed due to the COVID-19 impact is expected to continue this year," adding, "Sales will focus on secondary batteries and semiconductor industries, with major clients including SK, Samsung, and LG." He continued, "As of the end of last year, the order backlog was approximately 10 billion KRW," and added, "This is a significantly higher level compared to previous years, making it highly likely that strong performance will be demonstrated in the first half of this year."

From a supply and demand perspective, Researcher Seo analyzed that there appears to be no significant overhang of shares.

TIRAYUTECH, which was listed on the KOSDAQ market in October 2019, is a software development specialist company related to smart factories, including manufacturing consulting for clients, core solutions, system construction, and operation. Its main business areas include supply chain management (SCM), manufacturing execution system (MES), and facility automation (FA) solution supply.

Researcher Seo emphasized, "TIRAYUTECH is expected to grow alongside SK as a strategic partner in SK's smart factory initiatives," and added, "It is presumed that they are drawing a big picture to build and convert the production sites of SK Group companies into smart factories."

He said, "Major clients such as Samsung, SK, and LG have mainly entered promising 4th industrial sectors, including secondary batteries, based on their IT capabilities," and noted, "TIRAYUTECH's sales composition by industry aligns with this trend, with 38% from secondary batteries, 29% from semiconductors and displays, and 14% from electrical and electronics." He added, "Based on this year's expected performance, the price-to-earnings ratio (PER) is 9.2 times," and analyzed, "Considering that the company has secured major clients mainly among large corporations and that the number of clients in newly entered industries is increasing, it is currently undervalued."