[Edaily Reporter Kwon Oh-seok] iM Securities announced on the 10th that it is maintaining its “Buy” rating and 70,000 won target price for #DeoksanNeoLux.

Jeong Won-seok, an analyst at iM Securities, stated, "Shipments of OLED materials, the company’s core business, are showing a fairly robust trend despite concerns over slowing smartphone demand. This is because the utilization rate at Samsung Display, its main client, is being maintained at a high level," he said. "It is understood that major Chinese smartphone manufacturers such as Xiaomi, Oppo, Vivo, Transsion, and Honor have significantly revised down their annual shipment targets for this year by approximately 25–35% due to the recent sharp rise in prices caused by the memory semiconductor supply shortage."
He continued, "On the other hand, Samsung Electronics and Apple, which account for about 90% of Samsung Display’s smartphone OLED panel shipments, are pursuing strategies to expand their market share based on a stable supply of components, and as a result, their sales trends are also looking favorable." "In fact, while OLED panel shipments to the top 10 smartphone manufacturers in the first quarter decreased by 10% year-over-year, Samsung Electronics and Apple’s purchases of smartphone OLED panels increased by 3% and 7%, respectively," he elaborated.
Researcher Jeong explained, “This trend is likely to continue into the second quarter. This is particularly because shipments of OLED materials are picking up in earnest ahead of the launch of the Galaxy Z Fold 8 in July and the iPhone 18 and new foldable models in September.”
He added, "This is also positive from a profitability perspective. Despite growing pressure from smartphone manufacturers to lower OLED panel prices due to the burden of memory chip prices, Duksan Neolux is expected to see an improvement in its product mix thanks to increased shipments of Black PDL, which is seeing expanded adoption primarily in high-end products such as the Galaxy S26 Ultra, Galaxy Z Fold, and iPhone foldables. Consequently, the company is likely to maintain stable profitability in the second quarter as well.”
He also highlighted the sustained earnings growth of its subsidiaries. He noted, “Hyundai Heavy Industries Turbo Machinery is expected to see expanded revenue recognition as shipments of certain volumes, which were delayed due to logistics disruptions caused by the Iran situation in the first quarter, gradually return to normal.” He added, “With new orders steadily increasing, particularly for nuclear pumps and gas compressors, stable earnings growth is expected to continue. "In particular, regarding gas compressors, the company is the exclusive supplier for large turbines to Mitsubishi, the world’s leading gas turbine manufacturer, and the high potential for order expansion in the medium to long term is a positive factor," he added.