[Market Focus] Earnings Growth Expected... Graphy Up 16%

The stock price of Graphy, which is expected to see a sharp increase in performance based on overseas markets, is showing strong momentum.

As of 11:14 a.m. on the 27th, Graphy was trading at 10,200 won, up 1,420 won (16.17%) from the previous trading day.

Graphy, which was listed on KOSDAQ in August, generates product sales from materials (shape memory materials), equipment (nitrogen hardeners, residual resin, removal devices), and SMA (shape memory transparent orthodontic devices), while merchandise sales consist of 3D printers and oral scanners. Due to the nature of its business, the company faces a high initial fixed cost burden from participating in overseas conferences and customer acquisition efforts.

On this day, Bookook Securities initiated coverage on Graphy, stating, "The company's steep earnings growth is expected to continue, as rapid market penetration of SMA products is added to material sales in overseas markets." The brokerage forecasted next year's annual revenue at 42 billion won, up 58.1% year-on-year, and projected an operating profit of 9 billion won, marking a turnaround into the black. There are expectations that both quarterly and annual earnings will see a full-fledged turnaround.

Kim Sunghwan, a researcher at Bookook Securities, commented, "Based on its proprietary material blending technology, the company’s scalability-including business expansion through its material platform and diversification of its product portfolio-will be a key mid- to long-term investment point." He added, "Even after the company’s earnings stabilize, its scalability could justify a high multiple, on par with leading domestic and global market players."