[Click eStock] "Optrontek, Rapid Increase in Automotive Parts Sales... Value Rise"

Independent research firm FS Research analyzed on the 1st that Optrontec is expected to see a valuation increase due to sales growth in automotive components.

Hwang Se-hwan, a researcher at FS Research, stated in a report on the same day, “Last year, the sales of the automotive optical lens and module division were 40.1 billion KRW, but this year it is expected to more than double to 90 billion KRW, and next year it is estimated to reach 139 billion KRW, showing 50% growth.” He added, “As the camera resolution of the client company increased from 2 million pixels to 5 million pixels and Optrontec was selected as a new vendor, housing product supply to global electric vehicle manufacturers will begin first.”

This year, Optrontec’s performance is expected to reach sales of 290 billion KRW and operating profit of 23.2 billion KRW, increasing by 24.9% and 54.7% respectively compared to the previous year. Researcher Hwang analyzed, “The existing mobile phone parts division is expected to grow by around 10%, and sales of automotive components such as supply to global electric vehicle manufacturers and MLA are expected to increase from 40.1 billion KRW to 90 billion KRW.”

He also said, “Based on Optrontec’s performance this year, the price-earnings ratio (PER) is about 6.4 times. Since the proportion of automotive component sales is 31% this year and 37.5% next year, compared to peer groups such as MCNEX’s 24F PER of 12.1 times and Patron’s 24F PER of 12 times, it is undervalued.” He concluded, “If the performance of the automotive segment becomes visible, a valuation increase in the stock price can be expected.”