Kiwoom Securities analyzed on the 29th that Sekyung Hi-Tech's growth will continue due to the foldable phone effect. No investment opinion or target price was presented.
Kiwoom Securities expects Sekyung Hi-Tech's protective film for foldable phones to maintain steady growth. Oh Hyunjin, a researcher at Kiwoom Securities, said, "Based on technological competitiveness such as MDD printing technology, the company maintains a unique position in the market," adding, "For new foldable smartphones, it is understood that new materials and processes for impact resistance reinforcement are additionally required." He also added, "We expect an increase in average selling price (ASP) and profitability improvement."
Kiwoom Securities forecasts that Sekyung Hi-Tech's sales and operating profit this year will reach 386.5 billion KRW and 56.7 billion KRW, respectively, representing increases of 27% and 57% compared to the previous year.
He explained, "Sekyung Hi-Tech is understood to have improved its Glastic yield recently through the introduction of automated processes," and "We expect an expansion of supply volume and profitability improvement through enhanced price competitiveness."
Along with this, he emphasized, "The company's optical clear adhesive (OCA) film for organic light-emitting diode (OLED), used between display panels and cover glass, is expected to be supplied to a North American customer's new OLED tablet," adding, "Due to the larger area compared to smartphones, the ASP of OCA is judged to increase more than threefold, and some production is estimated to have started within the first quarter."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
