Reasons Why Expectations for MCNEX Are Gradually Rising

[Asia Economy Reporter Hyunseok Yoo] There is a growing outlook that a reassessment of MCNEX is necessary, as the growth potential of its automotive electronics division is being highlighted.

According to the financial investment industry on the 17th, MCNEX showcased core technologies such as advanced autonomous driving systems using video sensing methods at CES 2021. The company has participated with a solo booth for seven consecutive years from 2015 to 2021.

In particular, the securities industry expects MCNEX's performance to improve this year. This is due to the growth potential of the automotive electronics division and the visible progress in entering the North American market.

NH Investment & Securities forecasted that MCNEX's operating profit will increase by 81.2% year-on-year to 107.2 billion KRW this year. Furthermore, it is expected to record 144 billion KRW in 2022, marking the beginning of a full-scale performance expansion phase.

Researcher Lee Gyuha of NH Investment & Securities explained, "In addition to performance improvements due to the recovery of sales to existing customers, an expansion in automotive electronics sales is expected, driven by increased sales of driving system components related to autonomous driving products." He added, "We anticipate MCNEX to emerge as a new company different from the past when sales were overwhelmingly dependent on a single customer, with entry into North American customers."

He emphasized, "As of 2021, MCNEX's price-to-earnings ratio (PER) valuation remains at past levels, so a stock price reassessment is expected. Compared to other companies whose stock prices have risen recently due to autonomous driving issues, MCNEX is clearly undervalued, indicating sufficient potential for stock price growth."