[Click eStock] "Tobis, Extremely Undervalued Compared to Growth Potential"

NH Investment & Securities analyzed on the 18th that Tobis is an extremely undervalued company compared to its growth potential. No investment opinion or target price was provided.

Sim Eui-seop, a researcher at NH Investment & Securities, explained, "The casino monitor business has also continued steady growth following the pandemic due to the expansion of casino resort investments in various countries," adding, "The strength of the US dollar is also expected to have a favorable impact on Tobis's performance."

He particularly viewed the newly announced facility investment as positive for CAPA expansion. Tobis had disclosed plans to expand production facilities for automotive display modules at its Seocheon plant, worth 8.5 billion KRW. He predicted, "The annual production capacity (CAPA) is expected to increase significantly, by about 100 to 150 billion KRW."

He stated, "The automotive display business is showing a trend of turning profitable and expanding profits this year due to high sales growth and economies of scale, emerging as a core growth driver surpassing casino monitor sales," and added, "From next year, sales to global clients such as Stellantis and Continental are expected to be in full swing."

He emphasized, "Despite the stock price rising after the facility expansion announcement, the company remains undervalued relative to its growth and profitability," stressing, "Both the automotive display and casino monitor businesses possess high growth potential and global competitiveness, so a continued revaluation of the company's value is expected."