[Asia Economy Reporter Hyungsoo Park] Fabernine is showing strong performance. The news that Samsung Electronics is entering the kiosk business for the first time appears to have influenced the stock price. A kiosk is an unmanned device with a touch screen interface. As the contactless culture has expanded due to COVID-19, demand for kiosks has recently surged. Samsung Electronics plans to expand its kiosk business overseas, starting with a domestic launch.
At 10:51 AM on the 28th, Fabernine was trading at 6,020 KRW, up 4.15% from the previous day.
On the same day, an IT specialized media reported that Samsung Electronics' Visual Display Business Division (VD) plans to launch a new B2B kiosk product within this month. They have also completed the trademark application for "Samsung Kiosk."
The Samsung Kiosk is a product that enables everything from information delivery to payment in one device. While Samsung Electronics has sold signage for kiosk display purposes before, this is the first time they have developed and introduced a complete kiosk product capable of payment.
Fabernine is a company specializing in aluminum surface treatment. It is responsible for the exterior of Samsung Electronics' TVs and home appliances.
Researcher Seonghwan Choi from ResearchAlum explained, "As design has become important in selecting home appliances recently, the application of metal, which has a premium image, is increasing," adding, "surface treatment technology is mainly applied to premium products, causing the average selling price (ASP) to rise annually."
He continued, "This year, with the launch of Samsung Electronics' Mini LED TV and the advent of the contactless era, demand for smart signage is expected to surge," and suggested a target stock price of 10,500 KRW.
He analyzed, "The target stock price was calculated by applying a PER of 15 times to this year's expected EPS of 697 KRW," and "considering the average PER of 20 times for aluminum-related companies such as Aluco and Sama Aluminum, a conservative application was made."
Researcher Choi emphasized, "Since 2015, Fabernine has been the sole supplier of exterior parts for unmanned terminal smart signage supplied by Samsung Electronics to Starbucks and McDonald's," and added, "Samsung Electronics is the global market leader in digital signage with about a 27% market share."
Market research firm Grand View Research expects the global digital signage market size to grow from 15 trillion KRW in 2019 to 35 trillion KRW by 2025, at an average annual growth rate of about 14.1%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
