[Edaily Reporter Kwon Oh-seok] #Neotis shares are surging in early trading. It appears that buying interest is surging on the back of positive outlooks from the securities industry.

According to MP Doctor on the 1st, as of 9:10 a.m., Neotis is trading at 35,850 won, up 13.45% from the previous trading day.
Earlier today, Meritz Securities released a report predicting that "Neotis’ profitability will improve significantly starting in the second quarter, driven by top-line growth centered on micro-bits and the stabilizing effect of raw material prices." However, the firm did not provide an investment rating or target price.
Neotis, a company specializing in precision components for semiconductors and automobiles, focuses on the manufacture of micro-bits for PCB processing, motor shafts, and lens polishing machines for optical machinery.
Yang Seung-soo, an analyst at Meritz Securities, said, “We forecast second-quarter revenue and operating profit at 23.3 billion won (+48.3% year-over-year) and 4.1 billion won (+220.2%), respectively. “The micro-bit division is expected to see the full impact of capacity expansion from the installation of new equipment starting in the second quarter,” he explained, adding, “Current order volumes from major clients exceed 50% of available supply capacity, so we believe the company will maintain full-capacity operations immediately following the expansion.”
He further elaborated, “Our customer base is also expanding smoothly. We have passed quality tests for a domestic MLB manufacturer and expect to begin shipments as early as July. Additionally, demand for lens grinders is increasing due to end-users’ decisions to incorporate camera modules into wearables, and shaft sales are also expected to enter a recovery phase through the expansion of new vehicle models.”
Researcher Yang “The company recently decided to issue 18 billion won in CPS (convertible preferred stock), and the funds raised are scheduled to be used for new large-scale greenfield investments, separate from the current expansion through the additional installation of equipment,” adding, “Once both the current expansion and the new greenfield investments are completed, Microbit’s production capacity is projected to expand to 72 million units per year by the second half of 2027. We believe this will sustain a structural growth trend aligned with the expansion cycles of our numerous clients.”