[Special Stock] Deoksan Neolux Rises on Report of Excessive Price Adjustment

Duksan Neolux is on the rise in early trading on the 12th, supported by securities analysts' assessment that the stock price adjustment is excessive.

As of 9:31 AM that day, Duksan Neolux was trading on the KOSDAQ market at 26,700 KRW, up 1,700 KRW (6.80%) from the previous close.

IM Securities recommended 'overweight' stating that considering recent external growth through acquisition of stocks and equity securities of other companies and the potential benefits from Apple’s foldable devices, the current stock price adjustment is excessive.

Jung Won-seok, a researcher at IM Securities, said, "Duksan Neolux has agreed to acquire a 59.7% stake in Hyundai Heavy Industries Turbomachinery, a power plant and industrial pump company, for 71 billion KRW," adding, "This will be reflected in consolidated earnings from March next year."

Hyundai Heavy Industries Turbomachinery achieved sales of 114.7 billion KRW and operating profit of 15.2 billion KRW last year. Recently, it secured new orders related to nuclear power projects and localization of cryogenic pumps, significantly increasing its order backlog. Researcher Jung predicted, "It will serve as a stable cash cow that can increase return on equity (ROE)."

He added, "Apple is expected to apply the Black PDL, exclusively supplied by Duksan Neolux, to the new iPhone foldable product scheduled for release in the second half of next year," and forecasted, "The Black PDL, currently limited to the Galaxy Z Fold, will rapidly expand through the iPhone foldable."

He continued, "Since the Apple foldable is 2 to 3 times larger in area than the existing iPhone, assuming annual panel shipments for Apple foldables of 25 to 30 million units, it will have a performance effect equivalent to 60 to 80 million existing iPhones," estimating, "Operating profits will reach 64.9 billion KRW and 82.6 billion KRW in 2025 and 2026, respectively."