[Click eStock] "DYPNF, The Year When Order Backlog Turns into Performance"

NH Investment & Securities analyzed on the 12th that DYPNF will have a year in which its order backlog is recognized as performance. No investment opinion or target price was provided.

Researcher Sim Eui-seop of NH Investment & Securities said, "DYPNF is a global powder conveying system engineering specialist company," adding, "It has steadily grown by continuously advancing process technology along with the expansion of material demand due to industrial development, but most projects were postponed due to the pandemic and the Ukraine war, resulting in sluggish order activities and continued poor performance."

However, NH Investment & Securities expected a performance turnaround starting from the fourth quarter of last year.

Researcher Sim said, "We believe it is time to pay attention to the upcoming performance turnaround after a period of sluggishness," explaining, "Most of the delayed project orders and constructions due to the pandemic and the war have normalized, and a sharp performance turnaround is expected from the fourth quarter of last year."

He continued, "Revenue recognition for projects delayed by the Ukraine war also began in the fourth quarter of last year, and full-scale performance reflection is expected from this year," adding, "Additionally, PCS sales that were delayed due to accounting changes in the second quarter of last year are expected to be reflected in the first quarter."

He said, "As of the third quarter quarterly report last year, the order backlog was 472.2 billion KRW," and added, "Even excluding the revenue recognized in the fourth quarter of last year, when adding the 156 billion KRW order amount for Sampak LFT on December 13 last year, the year-end order backlog is estimated to be in the high 500 billion KRW range."

Researcher Sim expected this year to be a year when DYPNF is re-evaluated. He emphasized, "This year is expected to focus more on recognizing the accumulated order backlog as sales rather than on order activities," and added, "Orders related to secondary batteries and waste batteries are also expected to steadily increase, raising expectations for valuation re-rating."