[Click eStock] "Oros Technology, Operating Profit Growth Expected This Year"

Korea Investment & Securities expected on the 28th that Oros Technology's operating profit will increase significantly this year.

Oros Technology recorded sales of 28.9 billion KRW and operating profit of 10.1 billion KRW in the fourth quarter of this year. This represents an increase of 53.8% and 122.8%, respectively, compared to the same period last year.

Yoon Cheol-hwan, a researcher at Korea Investment & Securities, explained, "With an increase in the number of equipment shipments and a rebound in the average selling price (ASP), which had slightly declined throughout the year, the company achieved the highest quarterly sales ever."

He added, "It seems that the effects of new product launches and diversification of sales channels worked simultaneously in the fourth quarter, following the third quarter. Continuous cost efficiency throughout the year led to a 10.9 percentage point (P) increase in profit margin compared to the same period last year."

Researcher Yoon estimated, "Sales will reach 74.7 billion KRW and operating profit 12.7 billion KRW this year," and analyzed, "The proportion of back-end process equipment exceeds 30% of total sales, continuing the ASP increase effect." He emphasized, "The key this year is the operating leverage effect due to cost stabilization. Sales recognition for new overseas customers will begin in the first half of this year, and quality tests for thin film thickness measurement equipment will follow in the second half."