[Asia Economy Reporter Hyungsoo Park] Seojin System is showing strong performance. The prospect of achieving the highest sales in Q3 this year appears to have influenced the stock price.
As of 9:50 AM on the 6th, Seojin System is trading at 40,100 KRW, up 6.51% from the previous trading day.
Jongseon Park, a researcher at Eugene Investment & Securities, stated, "We estimate sales of 172.8 billion KRW and operating profit of 18.7 billion KRW in Q3." He explained, "Sales are expected to increase by 100.7% compared to the same period last year, and operating profit is expected to turn positive."
He added, "With stable sales growth across all business sectors, the highest sales will be renewed in Q3 as well," emphasizing, "Along with sales of telecommunications equipment parts, mobile parts, ESS parts, and semiconductor equipment parts, the balanced growth across all business sectors and expectations for profitability improvement will lead to a positive turnaround in the stock price."
He analyzed, "In the second half of the year, sales of telecommunications equipment parts for India will surge," and "customer diversification with Fujitsu and Ericsson is also underway, which is positive."
Furthermore, "Mobile parts sales are expanding from the existing smartphone focus to laptops, maintaining stable growth," he emphasized, "and semiconductor equipment parts sales have started from the new Hwaseong plant since April, in addition to the existing Gumi plant."
Researcher Park said, "ESS parts sales will continue strong growth as the delay in sales from new customers will be reflected in the second half," and "sales of other parts such as household goods, electric vehicles, automobiles, and robots will grow significantly compared to the same period last year."
He analyzed, "The current stock price is at a PER of 15.8 times based on this year's expected EPS of 2,380 KRW," and "it is trading at a significant discount compared to the average PER of 41.6 times of domestic peers and similar companies such as Oisolution, KMw, KH Vatec, Sekyung Itech, and Shinheung SEC."
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