[Featured Stock] T-Plex, Stainless Steel Price Increase... Real Growth 'Cycle'

[Asia Economy Reporter Yoo Hyun-seok] T플랙스 is on the rise. It appears that securities firms' analyses, which expect favorable earnings growth due to increases in stainless steel prices and sales volume, have influenced this trend.

As of 9:22 AM on the 21st, T플랙스 was trading at 4,000 KRW, up 1.01% (40 KRW) compared to the previous trading day.

T플랙스 is a primary metal processing company. It was listed on the KOSDAQ market in 2009. The company procures raw materials from SeAH Changwon Specialty Steel and supplies products to over 1,500 customers in industries such as shipbuilding and semiconductors. It holds the number one market share in the stainless steel bar sector. Its main businesses include bars, plates, and wires, while also engaging in the distribution of rare metals such as titanium and nickel alloys.

Its first-quarter earnings this year were 40 billion KRW in sales, 2.1 billion KRW in operating profit, and 1.5 billion KRW in net profit. These figures represent increases of 18.7%, 90.9%, and 108.6% respectively compared to the same period last year, marking the highest quarterly sales in its history. Earnings growth continues due to recovery in front-end industries such as semiconductors, automobiles, and LNG ships, along with increased order volumes.

Researcher Lim Sang-guk of KB Securities stated, "We focus on the favorable earnings growth cycle driven by increases in stainless steel prices and sales volume, as well as cost reductions," adding, "The rise in nickel prices is leading to an increase in stainless steel selling prices."

Lim also explained, "An increase in orders is expected due to the recovery of front-end industries such as semiconductors and automobiles," and "The demand for stainless steel valves and fittings is driving continuous growth, supported by semiconductor facility investments and large-scale LNG ship orders." He emphasized, "As stainless steel materials are applied to electric vehicle battery modules, earnings contributions are expected to expand with the growth of the electric vehicle market in the future."