[Click eStock] "TipleX, Earnings Expected from Growth in Semiconductor and Electric Vehicle Front Industries"

[Asia Economy Reporter Hyunseok Yoo] KB Securities analyzed on the 11th that Tiplax is expected to improve its performance due to semiconductor facility investment and growth in the electric vehicle market. No investment opinion or target price was presented.

Tiplax is a stainless steel processing specialist company established in 1982 as Taechang Sanghoe and listed on KOSDAQ in 2009. As a primary metal processing company, it procures raw materials from SeAH Changwon Specialty Steel and supplies products to various downstream industries such as machinery, shipbuilding, plants, and semiconductors.

Last year, sales and operating profit were 132.6 billion KRW and 4.8 billion KRW, increasing by 1.1% and 21.3% respectively compared to the previous year. KB Securities researcher Sang-guk Lim said, "Due to increased orders from the recovery of downstream industries, the company recorded its highest sales in 9 years and has maintained continuous profits for over 30 years," adding, "With favorable downstream industries, rising nickel prices, and supply of materials for electric vehicle battery modules, performance growth is expected to continue this year."

KB Securities expects Tiplax's performance to improve this year due to increased semiconductor facility investment and LNG ship orders. He emphasized, "Steady demand growth is expected in the CD Bar (Cold Drawn Bar, Mabonggang) sector following the growth of downstream industries," and "As orders for semiconductor facility investment and ultra-low temperature valve materials for LNG ships increase, demand for stainless steel valves and fittings processed from CD bars is expanding."

Additionally, supply of parts installed in electric vehicle battery modules is expected to increase. He noted, "Attention is focused on electric vehicle battery module installation; the battery module is a component that protects electric vehicle battery cells from external shocks, and four stainless steel pillars are installed in the module case," explaining, "Sales have been generated since May 2019, and deliveries are being made at a scale of 70 to 100 tons per month to Company S, with expected performance contribution expansion in line with electric vehicle market growth."