[Click eStock] "Ubivelox, Continued Strong Earnings Growth... Target Price Up"

On the 27th, SK Securities raised the target price of Ubivelox to 31,000 KRW, citing expectations of continued strong performance growth.

Heo Seon-jae, a researcher at SK Securities, stated in a report on the same day, "Ubivelox recorded its highest-ever performance since its establishment with sales of 543.6 billion KRW and operating profit of 49.3 billion KRW last year, representing increases of 21% and 233.9% respectively compared to the previous year," and analyzed, "Despite a decline in the black box business due to market contraction, the smart card and home appliance sectors grew significantly, driving overall company performance growth."

Researcher Heo added, "The smart card sector grew approximately 17% year-on-year due to expanded overseas sales and increased sales of high value-added cards, while the home appliance business grew more than 90% year-on-year thanks to strong sales of the flagship product, the 'Roborock' robot vacuum cleaner," and predicted, "Last year's performance can be seen as an improvement in fundamental strength rather than a one-time factor, and meaningful quarterly performance growth is expected to continue this year."

First, the smart card sector is expected to see increased exports and sales of high value-added cards. Ubivelox's achievements in securing payment authentication and establishing sales networks in major overseas countries over the past several years are showing results, and exports are expected to expand mainly in countries with rapidly growing card payment markets such as Vietnam, the Middle East, Thailand, and Indonesia. Additionally, overseas sales of metal cards, which have profitability at least 30% to 1000% higher than regular cards, are also anticipated.

In the home appliance sector, the entry into offline channels is expected to sustain the sales growth of 'Roborock,' the number one robot vacuum cleaner in Korea. With the new product S8 Max V-Ultra scheduled for release in April, remarkable performance growth is expected to appear starting from the second quarter.

He stated, "This year's expected performance is estimated at sales of 614.5 billion KRW and operating profit of 60.8 billion KRW, representing increases of 13% and 23.3% compared to the previous year," and analyzed, "Ubivelox's current stock price is attractive with a price-to-earnings ratio (PER) of 5 based on this year's expected performance."

He added, "Furthermore, since about 75% of the average consolidated net profit from 2020 to 2023 is attributable to Ubivelox, the stock price discount issue due to the simultaneous listing of the subsidiary Thinkware is considered to be insignificant."