[Click eStock] "IEL Science, a Year of Strong Earnings Rebound"

SK Securities analyzed on the 3rd that IL Science will experience a strong performance rebound this year. No investment opinion or target price was provided.

IL Science recorded sales of 20.1 billion KRW and operating profit of 2 billion KRW in the first quarter of this year, representing increases of 122% and 1630% respectively compared to the same period last year. Na Seungdoo, a researcher at SK Securities, stated, "The effect of IL Mobility, acquired in January this year, has been fully reflected," adding, "IL Mobility, an affiliate company, specializes in the production of automotive interior and exterior materials, focusing on injection molding products, and has secured major domestic and international automobile parts manufacturers as key clients."

He explained, "The acquisition of IL Mobility appears to be generating effects beyond simple consolidated financial results," and "Notably, synergy with IL Science’s core competitiveness in silicon lens technology is expected to expand."

Researcher Na analyzed, "As the proportion of LEDs adopted in domestic and international automotive interior and exterior materials increases, interest in silicon lens technology has also grown," and "Until last year, silicon lenses were only supplied for automotive parts, but starting this year, with the acquisition of IL Mobility, direct production of automotive interior and exterior parts applying silicon lenses has become possible."

He added, "By moving one step closer to the upstream industry, product development and production have become easier, and aggressive market expansion based on silicon lens competitiveness is anticipated," noting, "In fact, domestic and international electronic component companies have shown increased interest in silicon lenses and attempted their own technology development, but this has only highlighted the competitiveness of our company’s silicon lens technology."

He mentioned, "Last year, the company proactively conducted a Big Bath by restructuring unprofitable businesses and reflecting cost increases, which led to sluggish stock price performance since the beginning of the year," but also said, "This year is expected to be a momentum for a strong profit rebound, so steady attention is needed."

He concluded, "The order backlog, which more than doubled compared to the end of last year as of the first quarter this year, hints at annual sales growth," and "Although bold cost recognition was made last year, there are areas likely to be reversed into profits this year, and the stock price level is considered reasonable without burden."