[Click eStock] "JNTC, Q2 Earnings Below Expectations"

On the 20th, Eugene Investment & Securities analyzed that JNTC's second-quarter performance fell short of market expectations due to sluggish smartphone sales from major clients.

JNTC recorded sales of 65.3 billion KRW and an operating loss of 20.9 billion KRW in the second quarter. Compared to the same period last year, sales increased by 17.6%, but operating profit turned to a loss.

Researcher Park Jong-sun of Eugene Investment & Securities stated, "The market expectations were sales of 103.8 billion KRW and operating profit of 19.1 billion KRW," adding, "The reason sales fell short of market expectations was due to the slowdown in the Chinese domestic economy and intensified competition in the premium market."

He continued, "Profitability also deteriorated significantly," adding, "The sharp decline in sales increased the burden of fixed costs, and other inventory loss evaluations were also reflected."

Researcher Park said, "We expect performance to improve from the end of the third quarter due to new product launches by major clients," and "Sales will increase significantly starting from the fourth quarter." He also stated, "The glass substrate business will enter the market from the second half of this year after consultations with major prospective clients," and lowered the target stock price from 33,000 KRW to 23,000 KRW.