[Click eStock] "Tobis, Continued Earnings Growth This Year"

Hana Securities analyzed on the 6th that Tobis is expected to show performance growth again this year. No investment opinion or target price was provided.

Based on consolidated figures, Tobis recorded sales of 623.8 billion KRW and operating profit of 58.4 billion KRW last year. This represents increases of 39.4% and 127.5%, respectively, compared to the same period the previous year. In the fourth quarter of last year, sales and operating profit were 158.8 billion KRW and 14.6 billion KRW, respectively, marking increases of 23.7% and 180.8% year-over-year. Seongho Kim, a researcher at Hana Securities, evaluated, "Considering the one-time expense of approximately 3 billion KRW related to performance bonuses in the operating profit segment, the recovery of the automotive electronics division and the sustained annual growth of the casino business are maintaining structural improvements."

Hana Securities estimated that sales by business segment were 65 billion KRW for industrial monitors (casino) and 83.5 billion KRW for the automotive electronics division. He said, "Although it is regrettable that sales in the industrial monitor division decreased in the fourth quarter of last year compared to 73 billion KRW in the third quarter, this is judged to be due to seasonal quarterly effects," adding, "Industrial monitors appear to be maintaining steady growth, so the trickle-down effect from continued investment in the upstream industry is expected to persist."

The contribution of the automotive electronics division to performance is increasing. He explained, "The automotive electronics division was previously a business that recorded losses based on operating profit, but it is currently showing a turnaround to profitability," and added, "Given the expected continuous increase in the sales proportion of the automotive electronics division, concerns about its profitability are considered resolved."

This year, it is expected to drive external growth through securing profitability via stable growth in the casino business and expanding production capacity (CAPA) of the automotive electronics division, along with the full-scale mass production of new customers and models. He emphasized, "The effect of the expansion is expected to be reflected from the third quarter of this year," and added, "Since the Chinese factory is also scheduled to begin mass production of new models in the second half of this year, it is a time to consider the possibility of recovery rather than concerns."

Hana Securities forecasted that Tobis's sales and operating profit this year will be 732.6 billion KRW and 72.1 billion KRW, respectively, representing increases of 17.4% and 23.5% compared to the previous year. He stated, "The expansion of the automotive electronics division was presented as a continuous investment point," and said, "Even now, as mass production for not only domestic automakers but also global customers is in full swing, the growth potential of performance remains valid."