[Click eStock] "Optrontek, Changed Environment... Increased Expectations This Year"

Kiwoom Securities analyzed on the 16th that expectations for Optrontec are rising this year due to changes in the business environment.

Oh Hyunjin, a researcher at Kiwoom Securities, explained in a report on the same day, “Optrontec announced preliminary results showing sales of 236.1 billion KRW and operating profit of 14.6 billion KRW last year, representing an 18% increase and a return to profitability compared to the previous year, respectively,” adding, “In the fourth quarter, sales reached 77.7 billion KRW, marking the highest quarterly performance.”

The increase in demand for folded zoom-related components and the rise in IRIS deliveries to smartphone manufacturers in the Greater China region contributed to the performance growth. In addition to investment gains from the disposal of financial assets, the manufacturing division demonstrated a turnaround through improved profitability driven by increased sales of high-margin products and cost reductions.

Researcher Oh Hyunjin stated, “This year, the effects of profitability improvement through business structure enhancements such as the relocation of production facilities to Vietnam will be reflected,” and forecasted, “With strong sales of the Galaxy S series and continued growth in demand for folded zoom components, the benefits will also increase.”

He also noted, “The growth of automotive optical components is becoming prominent, with an expected expansion of vehicle camera lens deliveries to global electric vehicle manufacturers this year,” and explained, “Additionally, growth in various automotive product lineups such as automotive IR filters and headlamp MLA (Micro Lens Array) glass wafers is noteworthy.”

He predicted, “Optrontec’s performance this year will see sales of 251.4 billion KRW and operating profit of 18.7 billion KRW, representing growth of 7% and 29% respectively compared to the previous year,” and judged, “Despite the changed business environment and the full-scale growth of the automotive division, Optrontec’s stock price is currently significantly undervalued at a price-to-earnings ratio (PER) of 6.5 times based on this year’s figures, indicating a need for re-rating of the company’s value.”