[Click eStock] “Solumiem, Earnings Turnaround Begins”

Yuanta Securities analyzed on the 20th that attention should be paid to the earnings turnaround of SoluM.

Kwon Myung-jun, a researcher at Yuanta Securities, stated, "Sales and operating profit in the third quarter of this year increased by 19.9% and 31.1%, respectively," and added, "Although the fourth-quarter earnings forecast was below expectations, it is a time to focus on the earnings turnaround rather than this impact."

Researcher Kwon said, "According to research institutions, the global market size of ESL is expected to grow at an annual rate of over 10%," and predicted, "Global economic slowdown → reduced consumption → intensified competition among companies → execution of ESL investments for differentiation."

He judged, "While competitors have a high proportion of sales concentrated in limited regions, the company has the advantage of securing customers in various regions such as Europe, North America, and Asia, so the impact of the global economic slowdown is limited."

He also said, "The global top 3 ESL companies are the company, Vusiongroup (SES Imagotag), and Pricer. Looking at the quarterly sales trends for 2024, Vusiongroup shows an increase compared to the previous year, whereas Pricer shows a decline in the second and third quarters of this year compared to the previous year," and analyzed, "The company's ESL sales trend shows a steady upward trend from 86.8 billion KRW in Q4 last year → 106.3 billion KRW in Q1 this year → 101.2 billion KRW in Q2 this year → 132.6 billion KRW in Q3 this year, indicating a phase of recovery rather than weakening competitiveness."