[Featured Stock] 'Yukil C&S' Rises... Expectation of Profit from Factory Sale

[Asia Economy Reporter Junho Hwang] Yukil CNS is showing strong performance in the market on the 26th.

As of 9:19 AM, Yukil CNS is trading at 3,725 KRW, up 22.94% from the previous close.

This upward trend is analyzed to reflect market expectations regarding the restructuring of its core business.

Following LG Electronics' mobile division withdrawal last year, Yukil CNS is shifting its main business focus from the existing 3D Glass sector to chemicals, secondary batteries, and the EV field.

Accordingly, Yukil CNS announced yesterday that it will sell an idle factory located in Gumi, Gyeongbuk, to UTEC for 2.8 billion KRW.

The idle factory in Gumi being sold has been leased since 2016 due to the relocation of the small and medium-sized module business of its main client to China. For reference, if the sale at 2.8 billion KRW is finalized on October 31, the book value is recorded at 1.6 billion KRW, which is expected to generate a special profit of 1.2 billion KRW.

Yukil CNS entered a new business sector last year by acquiring CNA, a precision chemical essential materials company. Reflected in the consolidated financial results, operating losses were significantly reduced, and net profit turned positive with a surplus of 2.5 billion KRW.

According to a company official, "CNA, acquired last year, has recently driven the company's performance improvement," adding, "The cash inflow from the sale of the idle factory following March will create significant synergy for future new business initiatives."