[Click eStock] "Jeil Technos, Record-Breaking Performance... Benefiting from Risk Reflection of Muryangpan Method"

On the 23rd, KB Securities analyzed that Cheil Technos recorded its highest-ever performance in the second quarter, exceeding expectations, and anticipated long-term reflective benefits due to the highlighted risk of the ‘Muryangpan construction method’.

With 50 years of experience, Cheil Technos primarily operates in construction materials centered on deck plates and steel processing for shipbuilding. In the first half of this year, the sales proportion by business division was 70% for construction and 26% for shipbuilding. The second-quarter results recorded sales of 68 billion KRW (+27.9% YOY), operating profit of 11.3 billion KRW (+82.6% YOY), and net profit of 8.1 billion KRW (+132.1% YOY).

Researcher Sang-guk Lim of KB Securities stated, “This is the highest quarterly performance ever, exceeding expectations,” and analyzed, “Despite the slowdown in the construction market, new plant expansions in niche sectors such as APT-type factories, semiconductors, and secondary batteries, along with product price increases, were the main factors for the strong performance.”

Researcher Lim added, “This year, record-high performance is expected not only from the existing construction sector but also from increased orders for new plants in semiconductors and secondary batteries and product price hikes,” and explained, “The current stock price is judged to be absolutely undervalued compared to the KOSDAQ market, with a P/E ratio of about 3.5 times based on this year’s expected performance.”

He also emphasized the expected reflective benefits due to the highlighted risk of the ‘Muryangpan construction method.’ Recently, the Muryangpan structure (a structure supporting the ceiling only with columns without beams) apartments and buildings have become a major issue. It is forecasted that if column-type structures replacing the Muryangpan structure become more active in the future, the application of deck plates will expand further.

Furthermore, he analyzed, “HI-deck and KEM-deck are decks for nuclear power plants, having excellent references such as supplying about 90% during past domestic nuclear power plant construction,” and added, “Since safety has been proven, it is highly likely that HI-deck will be applied to deck plates for SMRs in the future.”