'Inox Advanced Materials' Expected to Deliver Strong Performance Despite Off-Season

[Asia Economy Reporter Hyunseok Yoo] Enox Advanced Materials is expected to record strong performance in the fourth quarter of last year, supported by the operation of its customers' facilities.

On the 9th, Kiwoom Securities forecasted that Enox Advanced Materials' sales and operating profit for the fourth quarter of last year would reach 134.4 billion KRW and 30.4 billion KRW, respectively, representing increases of 57% and 152% compared to the same period last year.

Kiwoom Securities analyzed that the effect of the operation of new WOLED production facilities at Enox Advanced Materials' customers, solid iPhone demand, and strong sales of foldable smartphones all contributed to this performance. Kim Sowon, a researcher at Kiwoom Securities, stated, "The results are expected to exceed both estimates and heightened market expectations. Typically, the fourth quarter sees a significant decline in performance compared to the third quarter peak season, but operating profit is expected not only to maintain the previous quarter's level but also to set a record high with an operating margin of 22.6%."

In particular, performance improvement is expected to continue this year as well. Kiwoom Securities projected that Enox Advanced Materials' sales and operating profit for this year will reach 558.5 billion KRW and 116.1 billion KRW, respectively, marking increases of 16% and 22% compared to the previous year. Kim explained, "Growth is expected not only from the benefit of increased OLED panel shipments by customers but also from the expansion of new customers. The increase in foldable smartphone shipments and the diversification of supply materials are expected to drive performance."

He emphasized, "Production capacity is being expanded to meet increasing demand, and development and investment for new material supply are also underway. Enox Advanced Materials, as an OLED material company with the most prominent undervaluation appeal, is focusing on competitive business units to achieve rapid growth, and its corporate value needs to be re-evaluated."