[Click e-Stock] "Jeryong Electric, Reflecting High-Margin Orders... Growth Expected"

Sangsangin Securities analyzed on the 15th that Jerung Electric is expected to see performance growth this year as high-margin orders are reflected. No investment opinion or target price was presented.

Sangsangin Securities forecasted that Jerung Electric's sales and operating profit in the fourth quarter of last year would increase by 54.6% and 146.1%, respectively, compared to the same period of the previous year, reaching 59.3 billion KRW and 22.5 billion KRW.

Researcher Kim Kwangsik of Sangsangin Securities said, "The revenue recognition of delayed shipments from the third quarter was reflected in the fourth quarter," but added, "The delivery of products was delayed due to disruptions in the Panama Canal transit during the fourth quarter, offsetting the revenue deferral effect." He continued, "Nevertheless, considering seasonality, export-import data, and increased product inventory, it is certain that the quarterly record performance will be renewed."

Sangsangin Securities projected that Jerung Electric's performance will continue to improve this year as high-margin order backlogs are reflected. The expected sales and operating profit for this year are 178 billion KRW and 68 billion KRW, respectively.

Researcher Kim explained, "The order backlog as of the fourth quarter disclosure is expected to record 310.2 billion KRW," adding, "This is believed to be due to the company's strict selective order policy, and accordingly, 2024, when the order backlog accumulated in the middle of last year will be reflected, is highly likely to continue the high-margin trend."