[Click eStock] "'Business Improvement and Customer Diversification' Boost Dusanneoluxe's Target Price Up"

On the 16th, BNK Investment & Securities raised the target price for Duksan Neolux from 36,000 KRW to 40,000 KRW, stating that they "focus on the demand expansion due to the launch of new models by client companies and customer diversification." They also maintained a buy rating. The closing price on the 13th was 27,600 KRW.

On the same day, Minhee Lee, a researcher at BNK Investment & Securities, said, "Considering the future improvement in the industry and the effect of customer diversification, we revise next year's sales and operating profit upward by 11% and 17%, respectively," adding, "It is necessary to note that the stock price had already risen in the past when the supply chain was being established ahead of the launch of OLED new models for North American clients' smartphones and tablets."

Lee stated, "Due to the global smartphone supply chain inventory adjustment, performance growth in the second half of this year slowed down, and the stock price also dropped significantly," but added, "However, the inventory adjustment of smartphone OEMs is in its final stage, and many positive factors that can lead to future performance growth are awaiting."

She further explained, "First, early next year, North American smartphone clients will finalize their supply chains ahead of the launch of new foldable phone models in 2026," and predicted, "Basic models of next year's new smartphone models for North American clients are expected to additionally incorporate Duksan Neolux's materials."

Customer diversification is also a positive factor for the stock price. The researcher emphasized, "Material supply to China's largest display client, which had poor delivery performance so far, will significantly increase again next year," and added, "Duksan Neolux's black PDL (non-emissive material) is expected to expand from foldable to general models of Chinese smartphone manufacturers, contributing to sales from next year."

Additionally, she noted, "Hyundai Heavy Industries Turbo Machinery, recently decided to be acquired, will be consolidated from the second quarter of next year," and added, "We plan to reconsider the target price calculation at the time of reflecting the consolidated performance."