[Click eStock] "Solum, a Beneficiary Stock in the Era of Automation"

KB Securities analyzed on the 11th that SoluM is a beneficiary stock in the era of automation. They issued a 'Buy' investment rating with a target price of 25,000 KRW.

KB Securities analyzed that the core of SoluM's profit growth lies in the expansion of sales of Electronic Shelf Labels (ESL).

Lee Chang-min, a researcher at KB Securities, stated, "ESL is a product that can reduce labor costs by replacing the traditional paper price tags handled manually in retail stores such as large supermarkets and marts," and added, "Despite entering the market relatively late, SoluM is rapidly increasing its market share based on the advantage of technological superiority and full value chain internalization."

He emphasized, "SoluM's ESL offers communication speeds up to 10 times faster than competitors, battery life more than twice as long, and provides up to four-color displays, enabling services that meet diverse needs," and added, "It has superior manufacturing competitiveness compared to competitors, operating the only in-house factory in the industry."

He continued, "From server programming to design, direct manufacturing, distribution, installation, maintenance, and repair, everything is internalized, maximizing economies of scale and securing a structure capable of customized customer response."

KB Securities forecasted that SoluM's sales and operating profit next year will increase by 18% and 57% respectively from this year, reaching 1.9 trillion KRW and 131.9 billion KRW.

He emphasized, "For ESL, deferred sales are being reflected and cumulative order amounts continue to increase, so sales are expected to expand to 667.2 billion KRW by 2025," and added, "Regarding power modules, profitability is expected to improve as the proportion of high value-added server and electric vehicle (EV) charger applications increases."

He added, "Performance growth is anticipated after 2025, and especially based on technological competitiveness, it is expected that SoluM will be able to absorb competitors' market share in North America, enabling a steep growth trajectory in performance."