Using iPhone 12 OLED panel
Samsung to produce large-scale quantum dot TV
Expansion of utilization such as Hyundai Motor Company and Ioniq 5
Attention of OLED material companies
Deoksan Neolux, organization’Top Pick’
Interest in Innox·PI Advanced Materials, etc.
As organic light-emitting diodes (OLED) emerged as a’popularity’ in the display market, the market’s interest is attracting attention to OLED material manufacturers. OLEDs are thinner and lighter than liquid crystal display devices (LCDs) and have better image quality, so they are in the spotlight in the premium smartphone market. As the news that OLED displays will be installed on large TVs, tablet PCs, notebooks, and electric vehicles as well as smartphones, the stock price of material stocks is drawing an upward curve as well. Deoksan Neolux, a representative OLED material owner(40,150 -3.49%)Rose by more than 15% this year, thanks to the net buying of institutions.
Good results in the fourth quarter of the iPhone 12 effect
OLED material stocks made good results in the fourth quarter of last year. All models of Apple iPhone 12 are equipped with OLED panels, and Samsung Electronics(83,000 -0.60%)This is thanks to the increase in sales of OLED materials for smartphones as the Galaxy S21 was released earlier than usual.
Deoksan Neolux, a leading material maker that produces OLED organic materials, recorded a record high quarterly in the fourth quarter of last year. Sales increased 57% year-on-year to 43.5 billion won, and operating profit increased 55.4% to 14.3 billion won, which exceeded the consensus by 31.2%. From the 26th of last month to the 5th of this month, the institution purchased Deoksan Neolux stock for 9 consecutive trading days worth 27.5 billion won. Thanks to this, the market cap of Deoksan Neolux surpassed 1 trillion won for the first time during the intraday on the 5th. On the 8th, it ended at 4,150 won, down 3.49%.
PI Advanced Materials(42,750 +4.01%)Ended the market at 42,750 won, up 4.01% on that day. This is thanks to the results announced after the close of the trading day immediately before. This company is a manufacturer of polymide (PI) film, and PI film is used as a cover window material to protect the display of smartphones. It posted an operating profit of 16.8 billion won, an increase of 180% in the fourth quarter of last year.
Innox Advanced Materials(47,650 -2.16%)Generates about 40% of sales from OLED materials. Operating profit in the fourth quarter rose only 5.4% year-on-year, but operating profit is expected to surge 143% in the first quarter of this year as large-sized OLED orders normalize. However, after hitting the highest price in September last year, the stock price moved sideways and rose only 6% in the last three months. This year, it is recording a lower rate of increase (4.49%) than Deoksan Neolux (15.20%) and PI Advanced Materials (15.54%). Kim Hyun-soo, Hana Financial Investment Research Institute, said, “The fact that the demand for Ennox Advanced Materials is diversified in the recent market atmosphere that responds to certain momentum has limited the stock price spike.”
“I look forward to more this year” for the expansion of the OLED market
The securities industry predicts that OLED material stocks will continue to improve earnings this year. This is because the demand for OLED materials will increase as 5th generation (5G) smartphones and foldable smartphones become popular. According to Hana Financial Investment, the OLED penetration rate in the entire smartphone market is expected to increase from 28% in 2019 to 34% this year.
It is also a good news that major customers have increased the production of OLED panels for notebooks and TVs, as well as diversified demands. “Samsung Display is increasing the production of OLED panels for notebook PCs, and in the second half of the year, it will produce large-scale quantum dot organic light-emitting diodes (QD OLED) panels for TVs,” said Jung Seok Won, a researcher at Hi Investment Securities. About 350 times the phone,” he explained. It is expected that the use of OLED will increase in future mobility such as electric vehicles and autonomous vehicles, such as announcing that Hyundai Motor will install Samsung Display’s OLED in the camera system of Ioniq 5.
The performance level is also rising. According to F&Guide, a financial information company, Deoksan Neolux’s operating profit consensus this year increased 13.3% from three months ago. This year’s sales and operating profit are estimated at 1719 billion won (19.2% increase from last year) and 44.8 billion won (20.9% increase), respectively. Kim So-won, a researcher at Kiwoom Securities, predicted that “Duksan Neolux is producing 100% of its sales from OLED materials, so the benefits of expanding the downstream market will be the greatest.”
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