[Click eStock] "InnoX Advanced Materials, Excessively Undervalued Considering Growth Potential"

NH Investment & Securities analyzed on the 6th that Inox Advanced Materials is currently excessively undervalued considering its mid- to long-term growth potential.

Lee Gyu-ha, a researcher at NH Investment & Securities, stated in a report on the same day, “Although recent expansion in high value-added product sales has resulted in favorable profit margins, it will be difficult to avoid the impact of sluggish smartphone sales from domestic clients,” adding, “However, in the mid to long term, with the expansion of front-end industries such as OLED clients and product diversification, as well as thermal runaway films for electric vehicles, the company’s performance growth is expected to continue.”

Researcher Lee Gyu-ha said, “Due to increased macro volatility, the current stock price is approaching a historical valuation low based on the price-to-earnings ratio (PER),” and recommended, “We advise taking the recent stock price decline as a buying opportunity at a low price.”

He continued, “In particular, the growth potential of the thermal runaway film market for electric vehicles, which is likely to be approved in the second half of the year, is noteworthy,” analyzing, “This market is estimated to be around 100 billion KRW based on 100,000 units and is expected to significantly contribute to the company’s performance expansion.”