[Click eStock] "Tobis, Strong Q1 Performance... Stock Price Revaluation Expected"

NH Investment & Securities analyzed on the 8th that Tobis recorded strong performance in the first quarter and that a stock price revaluation is possible due to growth in the automotive display market. No investment opinion or target price was provided.

Tobis posted consolidated sales of 139.2 billion KRW and operating profit of 10.1 billion KRW in the first quarter. This represents increases of 58.6% and 240.3%, respectively, compared to the same period last year. Sim Eui-seop, a researcher at NH Investment & Securities, said, "The turnaround to profitability in the automotive display business, initially expected in the second quarter, was brought forward to the first quarter, contributing to the strong performance," and added, "In non-operating areas, a gain of 6.2 billion KRW from the partial sale of land and buildings of the old Songdo headquarters was reflected, contributing to net profit."

He said, "Casino monitor sales reached approximately 63 billion KRW, increasing quarterly despite the off-season impact, maintaining steady growth," and added, "The benefits from expanded casino investments in various countries continue, and this trickle-down effect is expected to act as a mid- to long-term boom for Tobis's performance."

He explained, "The automotive display business started operating the additionally expanded Seocheon factory line in January, and the operating rate of the Dalian factory also increased, resulting in sales growth and a turnaround to profitability," and added, "Due to cumulative orders by vehicle models, stepped sales growth and economies of scale are expected to make profit growth steeper in the second half."

He emphasized, "It is time for a re-rating of Tobis, which supplies core products within the global automotive electrification trend to various customers," and added, "The subsidiary Glocordtech, acquired last year, is also expected to contribute to performance growth with full-year results reflected."