[Featured Stock] Point Mobile, Early Termination of Supply Contract Raises Expectations of Becoming Amazon's Second Largest Shareholder... Global Top 3

[Asia Economy Reporter Hyungsoo Park] Point Mobile is showing strong performance. It appears that the stock price has been influenced by expectations that the pace of Point Mobile's performance improvement will accelerate through Amazon sales.

As of 11:01 AM on the 30th, Point Mobile is trading at 30,000 KRW, up 12.99% from the previous day.

Jaeho Choi, a researcher at Hana Financial Investment, explained, "Amazon operates 2,427 logistics warehouses in 29 countries worldwide," and "looking at the number and distribution ratio of logistics warehouses by country, the US has 1,170, and India has 440."

He continued, "So far, most of Point Mobile's sales to Amazon have occurred in India," adding, "It is expected to supply to the US starting in the second half of this year."

He analyzed, "The ‘PM85’ model is scheduled to obtain Verizon certification from the US carrier in July," and "through obtaining Verizon certification, an increase in Amazon US sales is expected."

Additionally, he emphasized, "Point Mobile is estimated to achieve sales of 97.6 billion KRW and an operating profit of 15.7 billion KRW this year," noting that these figures represent increases of 99.6% and 15,600%, respectively, compared to last year."

Researcher Choi said, "Global logistics centers have entered a normalization phase across all industries," and added, "We expect benefits from a surge in demand for industrial PDAs due to the recovery of the business environment."

He also mentioned, "Additional franchise recruitment is possible based on global franchise references," and added, "Performance is expected to improve year by year."

Point Mobile signed a large-scale industrial PDA supply contract with Amazon in July last year. The contract stipulates the purchase of Point Mobile products worth a total of 200 million USD over eight years. Amazon secures warrants proportional to the purchase amount of the products. Upon completing the 200 million USD supply, Amazon can acquire 17.7% of new shares.

Researcher Choi predicted, "If Amazon exercises all warrants, it will become the second-largest shareholder of Point Mobile," and forecasted, "Point Mobile's performance growth will be steep through Amazon sales."

He emphasized, "The 200 million USD supply contract between Point Mobile and Amazon is expected to be completed early," and noted, "Total sales to Amazon, which were only 2.7 billion KRW in 2019, recorded 8 billion KRW in 2020."

He continued, "Cumulative sales reached 14.8 billion KRW as of May this year," and predicted, "Considering the trend, total sales to Amazon this year will reach 42.3 billion KRW." He also forecasted, "58.5 billion KRW in 2022 and 74.7 billion KRW in 2023," and judged that "the 200 million USD supply contract is likely to be completed within five years."