[Click eStock] "PNAH, Expected Performance Improvement This Year Through Diversification of Material Clients"

Heungkuk Securities analyzed on the 2nd that PNH Tech's performance is expected to improve as sales of materials for IT and TV diversify. They maintained a 'Buy' investment rating and a target price of 35,000 KRW.

Heungkuk Securities forecasted that PNH Tech's sales and operating profit for the fourth quarter of last year would reach 10.4 billion KRW and 1.5 billion KRW, respectively. Compared to the same period last year, sales are expected to increase by 25%, while operating profit is expected to decrease by 18%.

Lee Euijin, a researcher at Heungkuk Securities, said, "The shipment of iPhone 15 panels by LG Display in the fourth quarter is proceeding normally after production approval, but sales are expected to slightly decrease due to inventory adjustments of materials in the fourth quarter. However, sales of long-life B/H materials for TV are resuming, and TV material sales are expected to begin this year."

The researcher projected that PNH Tech's sales and operating profit for this year will reach 60.2 billion KRW and 11.1 billion KRW, respectively, representing increases of 50% and 82% compared to the previous year.

He explained, "With new sales for iPad and increased shipments of organic light-emitting diode (OLED) TVs leading to re-entry of materials and increased sales of automotive OLED materials due to the transition to electric vehicles (EVs), sales growth is expected. Considering the sales growth from increased shipments of iPhone panels by client companies, applying a high price-to-earnings ratio (P/E) is deemed reasonable."