April 20, 2024

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[THE INVESTOR] Cosmo Advanced Material and Technology has become a key stock in EV industry, said Hana Financial Investment on March 21, raising the target price to 22,500 (US$21) from 15,000 won.

Its revenue this year will spike 60 percent on-year to 503.4 billion won and operating profit by 149.4 percent to 21.2 billion won, estimated analysts Kim Du-hyeon and Lee Jeong-gi, raising the estimated earnings per share to 843 won from 560 won. 

Value of materials division will be highlighted further as it has folded loss-making insulation film business and cleared slow-moving stocks last year, and operating margin will significantly improve this year to 4.3 percent from last year’s 2.7 percent, they analyzed. 

Its current stock price is still undervalued considering the earnings prospects improvement, said the analysts maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)