[Click eStock] "JNTC, Full-Scale Earnings Growth Next Year... Target Price Raised"

Yujiin Investment & Securities analyzed on the 21st that JNTC is expected to experience significant growth next year due to the launch of new products by major Chinese customers. The investment opinion was maintained as 'Buy,' and the target price was raised from the previous 23,000 KRW to 26,000 KRW.

JNTC recorded consolidated sales of 32.7 billion KRW and an operating loss of 25.2 billion KRW in the third quarter. Sales decreased by 66.6% compared to the same period last year, and operating profit turned negative. Researcher Park Jong-sun of Yujiin Investment & Securities stated, "Following the previous quarter, sales of tempered glass sharply declined due to sluggish sales from major customers caused by the domestic economic downturn in China, intensified competition in the premium market, semiconductor supply issues, and delays in new product launches," adding, "Fixed cost burdens increased significantly, and inventory asset valuation losses were heavily reflected."

He forecasted that the expected sales and operating profit for the fourth quarter of this year will be 79.9 billion KRW and 14.8 billion KRW, respectively. He explained, "Although sales are expected to decrease by 29.2% compared to the same period last year, operating profit is projected to increase by 181.1%. A shift to sales growth driven by new product launches is anticipated."

In particular, he predicted substantial growth starting next year. He analyzed, "From next year, significant growth is expected due to product and customer diversification," and added, "This is because of the launch of new products by major Chinese customers, the effect of future price increases, expansion of mass production of 3D model types of automotive tempered glass and the potential addition of 2D models, as well as the expansion of tempered glass customers for watches."