[Click eStock] "PIMS, Expanding Factory Ahead of High Growth"

[Asia Economy Reporter Hyunseok Yoo] SK Securities analyzed on the 22nd that PIMS is expected to grow due to factory expansion. No investment opinion or target price was provided.

PIMS operates its business mainly around F-Mask and S-Mask, OLED display metal masks used in the deposition process of manufacturing small and medium-sized OLED display panels.

Researcher Sojung Lee of SK Securities said, "PIMS is expected to complete domestic and overseas factory expansions in the upcoming 4th quarter," adding, "Production volume is estimated to increase from the existing 600~700 EA/month to 1500~1700 EA/month." He further stated, "Based on 1700 EA/month, annual sales of approximately 200 billion KRW are possible."

He explained, "It is understood that preparations are underway to increase demand due to the expansion of new customers of the major client BOE, which accounts for the majority of sales," and added, "Since product testing is also underway for major domestic smartphone companies, additional orders may occur."

Along with this, benefits from the increase in BOE's OLED shipments are also expected. He said, "Since last year, Huawei has shown sluggish performance in the smartphone market due to US sanctions, and BOE, a major Chinese panel client of PIMS, is pursuing the expansion of new customers," adding, "From the 4th quarter of last year, BOE was selected as a supplier of OLED panels for Apple's iPhone replacements and is understood to be manufacturing samples of the iPhone 13 panels scheduled for release in the second half of the year."

Researcher Lee emphasized, "Within China, Xiaomi and Oppo are expected to partially offset the decrease in BOE's OLED display panel demand caused by Huawei's absence," and added, "Currently, BOE's OLED shipment ratio is about 10% of total panels, and PIMS's external growth is expected with the expansion of OLED shipments."