[Click e-Stock] "Novatec, Massive Expansion in Vietnam... Countdown to Entry into Robot Market"

On the 19th, Research Arum stated that for Novatec, it is presenting a fair share price of 38,500 won, based on this year's expected earnings per share (EPS) of 1,532 won and taking into account the average price-to-earnings ratio (PER) of domestic and overseas electronic materials specialists.

Choi Sunghwan, an analyst at Research Arum, said in a report that day, "Its high-magnetic-force products are high-performance neodymium magnets for smartphones and tablets, and the company is drawing attention as it is diversifying its business from mobile to electric vehicles and then to robots," adding, "It has secured a potential portfolio that can be expanded into the market for high-output motors for robots and industrial applications."

Novatec's consolidated sales for this year are estimated at 74 billion won, with operating profit projected at 15.7 billion won. Although last year's results were sluggish, the company is expected to enter a normalization phase, supported by a recovery in new product orders from clients and the expansion of foldable and premium lineups.

Choi said, "The expansion of the magnet production plant in Vietnam is likely to lead to increased production capacity and internalization effects, which in turn can improve cost competitiveness and profitability," adding, "As China's regulations on rare earths continue to tighten, the Vietnam plant is seen as a factor that could prompt a re-evaluation from the perspective of supply chain stability."