[Click eStock] "Ilantec, Achievable Annual Sales of 100 Billion Won" Target Price Upward Revised

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced on the 13th that it maintains a buy rating on IrenTech, stating that achieving an annual operating profit of 100 billion KRW this year is possible, and raised the target price from the previous 26,700 KRW to 30,800 KRW.

Researcher Kim Gyusang of Hana Financial Investment said, "This is due to the increase in average selling price (ASP) from waterproof and dustproof applications for mobile phone cases, strong sales of electronic cigarette devices, and the company-wide profit margin improvement from overseas subsidiaries turning profitable," adding, "Considering that the first quarter is the slowest season for IrenTech's performance, achieving an annual operating profit of 100 billion KRW is deemed possible."

IrenTech's first-quarter sales and operating profit are expected to reach 253.6 billion KRW and 20.5 billion KRW, respectively, representing increases of 78% and 11,613% compared to the same period last year. Mobile phone cases are expected to generate sales of 107.3 billion KRW due to the increase in selling price from waterproof and dustproof features applied to mid- to low-priced phones of client companies. Electronic cigarette devices are projected to record sales of 83.1 billion KRW, driving overall performance growth despite the Russia-Ukraine situation.

Researcher Kim said, "Sales of mobile phone cases are expected to continue rising, and electronic cigarette sales are anticipated to maintain first-quarter levels," adding, "The battery pack segment, which was expected to decline due to the suspension of supply for laptop battery packs, is forecasted to grow as supply for home energy storage systems (ESS) and electric bicycles (ebike) begins in earnest."

Sales for this year are expected to reach 1.2161 trillion KRW, with operating profit at 97.8 billion KRW. Mobile phone case sales are projected at 550.5 billion KRW and electronic cigarette devices at 332.4 billion KRW, with home ESS battery pack supply starting in the second quarter adding approximately 70 billion KRW in annual sales, leading to record-high performance.