Shinhan Investment raised its target stock price from 46,000 won to 55,000 won and maintained its "buy" opinion on Innox Advanced Materials, saying it estimates its biggest quarterly performance since its foundation.
On the 29th, Shinhan Financial Investment analyzed, "Sales and operating profit on a consolidated basis in the third quarter will be 133.4 billion won and 29 billion won, respectively.". "The positive trend is expected to freeze in the third quarter due to increased demand for materials in the laptop, tablet and OLED TV sectors at the center of existing smartphones," Shinhan Investment said.
"We expect the third quarter's operating profit ratio to surpass the 20 percent mark for the first time in the third quarter as the special film industry is characterized by the fact that operating leverage can be maximized as the utilization rate increases.".
"Sales of the OLED division are estimated at 75 billion won," Shinhan Financial Investment said. "We will lead the company's performance in the third quarter in line with strong OLED TV shipments from front-line customers.". Shinhan Financial Investment said, "We estimate that sales in the Smart Flex division will be 24.4 billion won," adding, "As demand for notebooks and tablets continues to recover, sales of magnetic films for digitalizers are also growing.".
Shinhan Financial Investment expects sales to rise to 454.6 billion won and operating profit to 84.4 billion won this year, up 35.2 percent and 92.5 percent, respectively, from a year earlier. Operating profit ratio is expected to improve significantly to 13.3% in 2019, 13% in 2020, and 18.6% in 2021.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
