[Click eStock] "Mplus, Expected to Achieve Record High Performance This Year... Undervalued Appeal '↑'"

Kiwoom Securities analyzed on the 16th that Mplus is expected to record its highest performance this year, highlighting its undervaluation appeal. No investment opinion or target price was provided.

Mplus is a specialized equipment company for secondary battery assembly processes, capable of turnkey production of the entire assembly process including notching, stacking, tab welding, and packaging. Its competitiveness is attributed to its long-standing expertise and stable productivity, evidenced by the successful development of an automated assembly process system in 2008 and delivery records to overseas companies in 2010.

In the second quarter, Mplus recorded sales of 149.5 billion KRW and an operating profit of 13.1 billion KRW. Sales increased by 5175% year-on-year, and operating profit turned positive. Oh Hyun-jin, a researcher at Kiwoom Securities, said, "Considering that last year's annual sales were 116.6 billion KRW, this is a record-breaking quarterly performance," adding, "The reason for the strong performance is the reflection of last year's orders in sales, with Mplus's annual new order amounts increasing from 87 billion KRW in 2020 to 189.5 billion KRW in 2021, and 295.1 billion KRW last year." He further noted, "It is understood that some large orders from the first half of last year and deferred sales have been fully reflected."

Kiwoom Securities expects Mplus's sales and operating profit this year to reach 319.4 billion KRW and 26.8 billion KRW, respectively, representing a 174% increase and a return to profitability compared to the previous year. He said, "Despite high sales recognition due to strong first-quarter performance, the order backlog as of the semi-annual report submission date stands at 434.1 billion KRW," adding, "Steady new orders continue, and since most orders are from overseas clients, high profitability is also expected."

He stated, "Mplus's stock price is at a PER of about 8 times based on this year," and added, "Due to past poor performance and intensified competition targeting domestic clients, it is in a significantly undervalued phase compared to competitors." He concluded, "It is judged that the company's high valuation appeal and growth potential will be highlighted through record-breaking performance."