[Click eStock] "T&L, a reliably undervalued earnings stock"

Yuanta Securities analyzed on the 11th that T&L is undervalued compared to its growth potential. They newly issued a 'Buy' investment opinion and set a target price of 100,000 KRW.

Yuanta Securities expects T&L to achieve its best-ever performance in the first half of this year. Hyunjeong Son, a researcher at Yuanta Securities, stated, "With the first quarter of this year as the low point, overseas sales growth in the second quarter is expected to be more prominent," adding, "Due to restocking demand in the US market and increased stocking demand from entry into new countries, the second quarter is expected to record the highest sales ever."

She predicted that T&L will experience high growth in the US and Europe. Researcher Son said, "HERO, a major client accounting for 62% of T&L's sales, was acquired by the large global consumer goods company C&D in 2022," and added, "They are accelerating expansion in the US offline channels and entry into the European market."

She emphasized, "Although the number of HERO's distribution points increased by 204% compared to the previous year in 2023, this accounts for only 15-20% of C&D's total distribution network," and stated, "Since the trouble patch market in the US and Europe is still in its early stages, there is ample growth potential."

She also noted, "In addition to the core business, new businesses such as microneedles, medical cannabis, and chemicals are underway," and concluded, "Considering structural growth potential as a comprehensive materials company beyond trouble patches, the stock price is judged to be even more undervalued."