Ajin Industrial is showing strong performance. The news of improved earnings in the first quarter of this year appears to be influencing the stock price.
As of 9:31 AM on the 16th, Ajin Industrial is trading at 5,890 KRW, up 7.68% from the previous day.
Ajin Industrial recorded sales of 197 billion KRW and operating profit of 27.4 billion KRW in the first quarter of this year. These figures represent increases of 60.2% and 143.8%, respectively, compared to the same period last year.
On the same day, Korea Investment & Securities analyzed that the strong performance of finished car manufacturers has spread to small and medium-sized parts suppliers. The combined sales of 45 major small and medium-sized parts companies in the first quarter increased by 26.3% year-on-year, and operating profit surged by 689.6%.
Jinwoo Kim, a researcher at Korea Investment & Securities, explained, "As the strong performance phase of finished car manufacturers continues, the earnings improvement of small and medium-sized parts suppliers is also ongoing." He added, "The key lies in sales growth." He further noted, "Prices and costs can fall at any time depending on changes in the purchasing policies of finished car manufacturers, so sales growth driven by volume increase is important."
Researcher Kim analyzed, "It is time to focus on companies whose sales have increased by more than 20% while profitability is rising," adding, "Companies expanding their business into future car sectors such as batteries, in addition to their existing core businesses, are showing rapid sales growth."
Ajin Industrial explained in its quarterly report that it is accelerating development not only of body parts but also of automotive electronic components. It introduced that it independently possesses automotive IT component technologies such as vehicle black boxes and Around View Monitor (AVM), which are currently hot topics.
The company has developed complex multi-stage mold technology in-house, securing high-strength material forming technology. It emphasized leading new technology trends in areas such as aluminum material forming and optimized high-safety lightweight body design technology. Amid the recent atmosphere where Hyundai Motor and Kia are placing greater emphasis on technology development, it is expected to be very helpful in securing new product orders.
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