[Click eStock] "PIMS, No.1 in OLED OMM in Korea... Forecasting Record High Performance"

Hanyang Securities analyzed on the 12th that PIMS, the No. 1 domestic company in OMM (Open Metal Mask), will record its highest-ever performance this year.

PIMS is a specialized manufacturer of OMM used in the deposition and encapsulation processes of OLED display manufacturing, holding the No. 1 market share in Korea. PIMS' sales consist of 99% metal masks. Last year's consolidated results recorded sales of 83.8 billion KRW and operating profit of 1.1 billion KRW, representing a 25% increase and an 84.9% decrease, respectively.

Researcher Lee Jun-seok of Hanyang Securities stated, “Although sales increased compared to the previous year, one-time costs such as the new factory and new hires were reflected, causing profit margins to decline. However, the company's full-scale growth in scale will begin this year. Long-term growth is expected due to structural changes in the upstream industry, such as Samsung Display's investment in 8.6-generation IT OLED and the transition of electronic device applications to OLED,” he analyzed.

Researcher Lee Jun-seok explained, “PIMS' metal masks are supplied to BOE and various Greater China customers. It is understood that the market share within domestic customers has also significantly increased. The fact that customers are not concentrated and that the company supplies multiple global display manufacturers both domestically and internationally means that the company's product technology is excellent,” he explained.

Last year, PIMS completed vertical integration of OMM by absorbing its subsidiary PIMS Frame. Researcher Lee said, “The new factory will apply metal masks, frames, and coatings together, contributing to improved profit margins. Apple is applying OLED panels to the 2024 iPad model, and it is understood that most application displays will transition to OLED by 2027,” he reported.

He also noted, “Not only for IT use but also for autonomous driving and other automotive applications, OLED adoption is becoming visible. As a specialized OLED metal mask company, PIMS is expected to greatly benefit from OLED's growth potential and scalability,” he forecasted.

Accordingly, he projected, “PIMS' consolidated results for this year will record the highest annual performance with sales of 102 billion KRW and operating profit of 10 billion KRW, increasing by 21.7% and 809.1% respectively compared to the same period last year. The effects of new hires and expansions, which were significantly reflected in SG&A expenses last year, are expected to become visible this year, and simultaneous increases in domestic and Chinese sales will occur due to expanded new investments by upstream display panel companies,” he anticipated.

Furthermore, he added, “The display industry, which has been stagnant since 2018, has laid the foundation to bloom once again due to the expansion of the OLED market. PIMS is expected to launch a signal flare for future growth with its highest-ever performance,” he added.