[Asia Economy Reporter Jang Hyowon] Eugene Investment & Securities analyzed on the 19th that Goyoung has successfully continued its performance recovery centered on automotive electronics.
The day before, Goyoung announced that its provisional consolidated sales for the fourth quarter of last year reached 69.3 billion KRW, and operating profit was 11.2 billion KRW. This represents increases of 16.6% and 12.1% respectively compared to the same period last year. The figures were similar to the market consensus estimates of 70.2 billion KRW in sales and 11.6 billion KRW in operating profit, maintaining a growth trend.
Park Jongseon, a researcher at Eugene Investment & Securities, stated in a report on the day, “The positive aspect of the fourth quarter results is that the performance recovery has continued over the past two quarters.”
By product, sales of 3D SPI (Solder Paste Inspection) and 3D AOI (Automated Optical Inspection) products increased by 28.3% and 21.9% respectively compared to the same period last year. However, sales of other products including semiconductor inspection equipment (Meister) and multipurpose inspection equipment MOI showed a decline due to deferred investments.
Looking at the front-end markets, sales for automotive electronics increased by 55.5% year-on-year to 31.6 billion KRW. This is due to continued investments in automotive electronics in the Americas, Europe, and China. Regionally, growth in the Americas, China, and Southeast Asia remained solid, with particularly notable growth in Europe.
Researcher Park said, “The expected performance for the first quarter of this year is sales of 77.6 billion KRW and operating profit of 13.1 billion KRW, representing increases of 13.5% and 13.7% year-on-year, continuing the performance recovery trend,” adding, “This is because new investments are expanding in the Americas, Europe, and Southeast Asia, which is expected to sustain the performance recovery.”
Accordingly, he stated, “We are raising Goyoung’s target stock price by 11.8%, from the previous 17,000 KRW to 19,000 KRW.”
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