[Click eStock] "PNAH Tech Continues Strong Growth This Year"

Shinhan Investment Corp. analyzed on the 1st that PNH Tech will show high growth this year. The investment opinion 'Buy' and the target stock price of 31,000 KRW were maintained.

PNH Tech recorded sales of 10.2 billion KRW and operating profit of 1.8 billion KRW in the fourth quarter of last year. Namgung Hyun, a researcher at Shinhan Investment Corp., said, "In the case of organic light-emitting diode (OLED) material companies, there is a lead demand of 1 to 2 months compared to the panel production time," adding, "Some of the materials supplied were used in panel production in the fourth quarter of last year due to delays in panel production by major customers in the third quarter of last year."

Shinhan Investment Corp. expects PNH Tech's sales and operating profit this year to reach 54.6 billion KRW and 10.2 billion KRW, respectively, representing increases of 36% and 57% compared to the previous year.

He explained, "The background of performance growth is the increase in volume due to the expansion of customers' mobile production capacity (Capa), the addition of new applications due to the expansion of IT OLED penetration, and the increase in demand for automotive OLED panels," adding, "Operating profit margin improvement is also expected to continue due to the leverage effect from increased operating rates."