[Click eStock] "KCC Glass, Ultra Undervalued Stalwart Stock"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities analyzed on the 11th that KCC Glass, while being the number one player in the domestic flat glass and automotive protective glass markets, is undervalued with an expected price-to-earnings ratio (PER) of 7 times this year.

Baek Joon-gi, a researcher at NH Investment & Securities, stated, "Considering the leading market share in the oligopolistic flat glass supply market, high stability secured through sales diversification into construction material glass and automotive glass, sales growth through expansion in Indonesia, net cash exceeding 260 billion KRW, and the industry's highest dividend yield, a PER of 7 times is excessively undervalued."

KCC Glass achieved its best performance since its establishment last year, recording sales of 1.1757 trillion KRW, a 65.9% increase from the previous year, and operating profit of 161.5 billion KRW, a 350.5% increase, driven by the merger effect with Korea Auto Glass and a sharp rise in flat glass prices.

This year, operating profit is expected to increase by 8.8% to 176 billion KRW, setting a new record high since the company's founding.

Researcher Baek said, "Only two companies in Korea produce flat glass, where KCC Glass holds a strong position," adding, "Flat glass is both a raw material for the company's glass products (accounting for 68% of sales) and also generates external sales as flat glass itself. However, domestic flat glass market prices follow a trend similar to imported glass prices. Prices of Malaysian glass have been rising steadily since a significant increase in 2021, and especially, architectural glass produced from flat glass is expected to benefit from a favorable environment such as the new government's housing supply pledges."