[Click e-Stock] "DK Techin: Earnings from OLED and Auto, Multiples from Robots"

On the 23rd, Hana Securities analyzed that DK Techin is simultaneously strengthening expectations for earnings growth centered on organic light-emitting diodes (OLED) and automotive (Auto), and for a valuation re-rating driven by robotics.

DK Techin's provisional results for last year show sales of 425.8 billion won, up 5.6% year-on-year, while operating profit came in at 21.2 billion won, down 8.4%. Overall top-line growth was supported by strong foldable shipments, but some volume was deferred to the first quarter as the launch of the new S series was pushed back to February, and an increase in upfront costs related to the expansion of new businesses weighed on profitability.

The pillars of future growth are threefold: IT OLED, Automobile, and robotics. First, in the IT OLED segment, new sales of 24.3 billion won are expected to be generated in 2026, and to expand by 188% year-on-year to 69.8 billion won in 2027. Mass production will begin in 2026 for one OLED tablet model for a North American customer, and adoption is expected to expand to two models in 2027.

Kwon Taeu, an analyst at Hana Securities, explained, "The key is that it is not just about volume growth; it will be accompanied by an increase in ASP," adding, "Compared with about 40 mobile SMTs, the number adopted for tablets and laptops is around 500, which represents a significant increase in unit count, and this can generate sales leverage effects through an improved product mix." He added, "This can be interpreted as a phase where the company's profit structure improves."

The Automobile segment is emerging as the core axis of earnings growth. Sales are projected to increase 29% year-on-year to 153.0 billion won in 2026, and to rise 89% year-on-year to 289.4 billion won in 2027, strengthening growth momentum. Wireless power charging (WPC) sales are expected to grow from 90.7 billion won to 149.3 billion won, and based on a five-year order backlog of 430.0 billion won as of 2027, the company is analyzed to be capable of securing a market share of around 40%.

Auto OLED is also forecast to expand rapidly from 39.6 billion won in 2026 to 117.0 billion won in 2027. The three-year order backlog is on an upward trend, rising from 42.0 billion won to 125.0 billion won. Analyst Kwon commented, "The expansion of adoption centered on premium brands and the increase in the number of models are factors that enhance earnings visibility," and evaluated, "The automotive electronics business has moved beyond a complementary business to establish itself as a growth pillar."

Robotics has been presented not as a simple new business, but as a strategic business that drives a change in positioning. It is a structure that expands based on WPC, ESS BMS, and FPCA technologies, and the company is currently collaborating with a North America-based customer on a charging module for robots. There is a possibility that sample supply and the transition to mass production will become visible this year, and if initial deliveries begin, revenue recognition in the second half of the year also appears possible.

Analyst Kwon stressed, "In an environment where the global robotics industry is being reshaped around North America, Korea, and China, early vendor entry carries significant strategic meaning," and added, "This should be interpreted not as a mere addition of new sales, but as a signal of a change in the company's positioning within the industry. This will be a decisive factor in triggering multiple expansion."

Full-fledged earnings level-up is expected to appear in 2027. Forecast results for 2027 are sales of 723.1 billion won, up 39.3% year-on-year, and operating profit of 51.0 billion won, up 105.1% year-on-year, marking a phase in which profit more than doubles. This is analyzed as the result of simultaneous contributions from IT OLED and Auto sales growth and improvements in the product mix.

Before that, 2026 is evaluated as a transition period in which the growth structure becomes more concrete. Forecast sales for 2026 are 519.2 billion won, up 21.9% year-on-year, and operating profit is expected to be 24.9 billion won, up 17.6% year-on-year. To respond to North American demand, the company plans to begin setting up its Georgia plant in the first half of the year, with the goal of achieving full-scale operation within the year. Although there will be an increase in depreciation expenses, the higher proportion of high-margin products is expected to drive an improvement in profitability.

Analyst Kwon stated, "Robotics is likely to be the decisive trigger for the company's valuation," and added, "It is now necessary to reassess the company not through the simple lens of an affiliate, but from the perspective of an independent growth engine."