On the 19th, Eugene Investment & Securities analyzed that although Goyoung's first-quarter earnings fell short of the market consensus average, sales are increasing in the automotive electronics and Internet of Things (IoT) sectors.
The previous day, Goyoung announced first-quarter sales of 63.7 billion KRW and operating profit of 9.6 billion KRW, representing decreases of 6.8% and 16.8% respectively compared to the same period last year. These figures were below the consensus sales of 76.8 billion KRW and operating profit of 12.9 billion KRW.
Researcher Park Jong-sun of Eugene Investment & Securities stated, “The poor performance was due to the off-season and a slowdown in global investments,” and analyzed, “By product, 3D SPI (solder paste inspection) products, semiconductor inspection equipment (Meister), and other (new business) sectors including MOI showed a declining trend.”
Researcher Park further explained, “By industry, sales for mobile devices and servers sharply declined, and by region, sales decreased mainly in Korea and China compared to the same period last year.”
He noted, “A positive aspect in the first quarter was that 3D AOI (automated optical inspection) increased by 5.7% compared to the same period last year, and by industry, automotive sales increased by 11.3% year-on-year as investments in electric vehicles expanded mainly in North America, Europe, and Southeast Asia.”
Additionally, he analyzed, “IoT-related sales also increased by 10.4% year-on-year, and by region, sales in Southeast Asia, centered on India and Thailand, rose by 74.8% due to the global production base relocation. Sales also increased in Europe and the Americas in automotive electronics and IoT sectors.”
He forecasted that Goyoung’s second-quarter performance this year would maintain a level similar to the previous year. He predicted, “Goyoung’s consolidated expected sales and operating profit for the second quarter are 64.3 billion KRW and 9.8 billion KRW respectively, representing a 1.3% decrease and a 2.2% increase compared to the same period last year.”
Furthermore, he added, “Currently, based on our estimated 2023 EPS of 740 KRW, Goyoung’s price-to-earnings ratio (PER) is about 19.9 times, trading at a discount compared to the average PER of 31.7 times for similar domestic and international companies and major firms.”
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