[Featured Stock] Myungshin Industry, the Biggest Beneficiary of the Electric Vehicle Era... Unstoppable Growth Instinct

Myeongshin Industry is showing strong performance. As its earnings rapidly improve alongside the electric vehicle market, it appears to be influencing the stock price as well.

As of 9:58 AM on the 24th, Myeongshin Industry is trading at 23,300 KRW, up 3.56% from the previous day.

Founded in 1982, Myeongshin Industry supplies lightweight products made using the hot stamping process to automobile manufacturers. The sales proportion by customer is 29.3% from Hyundai Motor and Kia, and 70.7% from global electric vehicle companies.

Hwang Se-hwan, a researcher at FS Research, analyzed, "With the advent of the electric vehicle era, the importance of improving fuel efficiency due to driving range limitations is increasing," adding, "The hot stamping process is gaining attention." The hot stamping process can increase strength by three times while reducing weight by 25%.

He continued, "Sales grew nearly fivefold in five years, from 344.2 billion KRW in 2018 to 1.5152 trillion KRW last year," adding, "Sales rapidly increased as they exclusively supply hot stamping parts to global electric vehicle companies."

He emphasized, "Profit margins are improving," noting, "Operating profit margin rose from 4% in 2018 to 10.9% in the first quarter of this year."

It is estimated that this year’s sales will reach 2.1382 trillion KRW, with operating profit of 227.7 billion KRW. These figures represent increases of 41.1% and 79.4%, respectively, compared to last year.

Researcher Hwang analyzed, "The price-to-earnings ratio (PER) was applied up to 20 times during the early stages of listing," and added, "The current stock price corresponds to a PER of 7.4 times, which is not a burdensome level."