NH Investment & Securities analyzed on the 26th that Tobis will have a remarkable profit growth this year. No investment opinion or target price was provided.
In the fourth quarter of last year, Tobis recorded sales of 128.4 billion KRW and operating profit of 5.2 billion KRW, representing increases of 44.3% and 100.2% respectively compared to the same period last year. Sim Eui-seop, a researcher at NH Investment & Securities, explained, "Operating profit fell short of market expectations due to one-time factors such as inventory valuation allowances for thermometers and costs related to relocating to a new headquarters."
He stated, "Casino monitor sales are improving operational performance through new product launches and expansion of client companies," adding, "Along with the growth of the casino industry, expansion of new clients and market share is expected to lead to record-high performance again this year."
He also explained, "The display business continues to grow as the Seocheon factory line begins full operation," and "The Dalian corporation is also increasing its operating rate as supply to Chinese and global automakers begins." He added, "As the cumulative number of car models equipped with Tobis products increases, economies of scale are expected to start."
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