[Click eStock] "UIEL, Exclusive Domestic Supplier to Global No.1 Electronic Cigarette PMI"

Hana Securities analyzed on the 3rd that UIEL has exclusively secured a client in Korea from PMI, the global No.1 electronic cigarette company, and expects a quantum leap in performance.

UIEL, established in 1982, is a plastic injection and metal processing company currently manufacturing various parts ranging from smartphones, automotive electronics, to electronic cigarettes. Covering a wide range of items from plastic to metal and capable of handling all processes from injection to assembly, it enables diversification of new product portfolios.

Choi Jae-ho, a researcher at Hana Securities, explained in the report on the same day, “UIEL has laid the foundation for a quantum leap in performance by securing PMI, a global tobacco company, as a new client,” and added, “UIEL is understood to be the only domestic electronic cigarette supplier responding to PMI.”

Researcher Choi said, “Domestic electronic cigarette companies include IrenTech and EMTech, and when electronic cigarette companies secure global clients, their price-to-earnings ratio (PER) expands to over 20 times, receiving valuations reflecting high growth. In the case of EMTech, it has secured BAT (global market share about 15%, ranked 2nd), a global tobacco company, as a client and is receiving an overvaluation with a market capitalization exceeding 600 billion KRW.”

He continued, “Despite UIEL securing the global market share No.1 client, the expected PER for 2024 is around 5 times,” analyzing that “this means it is very undervalued.”

Furthermore, he forecasted, “Sales to PMI are expected to exceed approximately 12 billion KRW in the fourth quarter alone, and at least about 70 billion KRW plus alpha in sales are expected next year,” and anticipated, “As the proportion of high value-added electronic cigarette parts business increases compared to mobile phone parts, profitability will also continuously improve.”

He added, “With the volume secured for PMI, a global tobacco company, the new business is expanding in earnest,” and concluded, “The year of the performance quantum leap has arrived.”