Hi Investment & Securities forecasted on the 8th that SoluM's fourth quarter of last year marked the bottom, and the company will show a stepwise growth trend.
Ko Eui-young, a researcher at Hi Investment & Securities, stated in a report on the same day, "Although the fourth-quarter performance fell short of estimates, considering one-time factors such as bonuses, incidental expenses related to the operation of the new factory in Mexico, and headquarters relocation costs, the results were solid." He predicted, "This year's performance is expected to increase by 7% and 19% year-on-year, with sales of 2.1 trillion KRW and operating profit of 183.9 billion KRW, respectively."
He explained, "The stock price trend of the competitor Vusion Group (SES imagotag) is relatively robust," adding, "Thanks to the supply of ESL to Walmart USA, their fourth-quarter sales last year surged 59% year-on-year to 240 million euros, and buoyed by strong performance, they presented an annual sales guidance of 1 billion euros for this year, a 24% increase compared to the previous year."
He analyzed, "On the other hand, SoluM's period adjustment between 27,000 and 30,000 KRW has been prolonged," attributing this to "relatively sluggish ESL supply in the fourth quarter following strong performance up to the third quarter of last year."
However, he judged, "The fourth quarter will be the bottom, and performance will improve stepwise each quarter," adding, "Considering that the outline of large orders is expected to emerge around the first quarter of this year, it is a good time to buy."
He further added, "As was the case with competitors, securing large retailer orders and gaining visibility into long-term external growth will be catalysts for multiple expansion."
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