Kemtronics is showing strong performance. According to an analysis report from a securities firm, Kemtronics plans to establish a 'full value chain' for the TGV process within the glass substrate supply chain to deliver processed glass to its customers. The stock price appears to be influenced by the analysis that, based on this year's performance, the price-to-earnings ratio (PER) is around 13 times, indicating severe undervaluation compared to other glass substrate-related stocks with a PER of 87 times.
As of 9:42 AM on the 13th, Kemtronics is trading at 28,500 KRW, up 5.75% from the previous day.
Jongbae Kim, a researcher at Hyundai Motor Securities, explained, "Through cooperation with global TGV equipment companies, holes are formed via laser processing followed by etching, which is Kemtronics' core competency, and Cu plating is carried out through subcontractors. We have secured competitiveness in TGV glass by completing the CMP process as well."
He added, "We believe Kemtronics will establish a leading position within the industry due to its technology related to glass etching," and "They have extensive etching experience over large areas compared to the glass applied to GCS currently." Furthermore, he emphasized, "In the TGV process, the laser + wet etching method, which is a promising direction, clearly provides a competitive edge over rivals."
He analyzed, "Operating profit for this year is expected to be 43 billion KRW, showing slight growth compared to the previous year," and "From 2026, operating profit is projected to reach 60 billion KRW due to increased sales in automotive electronics and semiconductor materials."
Researcher Kim expressed optimism, stating, "Glass-related sales may fluctuate depending on the customer's mass production schedule," but also noted, "From next year, some sample sales will occur through pilot lines."
The target stock price was newly set at 40,000 KRW. The current stock price is considered undervalued within the same industry, with a PER of about 13 times based on this year's expected performance.
Kim emphasized, "Currently, Kemtronics' valuation within the glass substrate supply chain is very low," and pointed out, "Philoptics has a PER of 87 times based on last year's performance, and JNTC, despite being in deficit, has a market capitalization of 1.0257 trillion KRW." He continued, "Kemtronics had been undervalued due to poor performance in the display sector, reflecting low growth expectations," and explained, "Now is the time for revaluation as a key vendor within the glass substrate supply chain."
He analyzed, "It is not just a simple theme or bubble; starting this year, prototypes led by Absolix are being shipped in earnest," and "The commercialization process is underway through customers' mass production evaluations." He added, "It is still at an early stage," and stated, "Applying a valuation to Kemtronics as part of the glass substrate supply chain is reasonable."
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