[Edaily Reporter Shin Ha-yeon ] On the 24th, DB Securities assessed that INNOX Advanced Materials Co., Ltd.(272290)is shifting away from a business structure centered on OLED materials and expanding its focus on new businesses such as semiconductor materials, printed circuit boards, robotics, and defense, thereby strengthening its medium- to long-term growth story.

Cho Hyun-ji, an analyst at DB Securities, stated, “We expect new earnings momentum from semiconductor materials and printed circuit boards,” adding, “We anticipate the company will grow its overall scale as new businesses replace its legacy operations.”

INNOX Advanced Materials Co., Ltd.’s first-quarter revenue this year was 95.1 billion won, and operating profit was 16.9 billion won, both down year-over-year. This was influenced by a decline in OLED material sales due to sluggish TV demand, a decrease in printed circuit board sales following the discontinuation of digitizer adoption, and amortization expenses related to Innox Lithium.

However, DB Securities assessed that there is a high likelihood of a performance recovery centered on new businesses. In the semiconductor materials sector, mass production of DAF for SamsungElectronics’ LPDDR began in March, and the company is expanding its customer base. Analyst Cho explained, “With the increasing sophistication of required specifications, the upward trend in blended average selling prices (ASP) is expected to continue.”

The EMI tape business was also cited as a growth driver. He noted, “EMI tape is currently being supplied directly to the satellite sector and offers a profitability advantage over other products.”

Analysts also expect the printed circuit board (PCB) materials business to enter a phase of substantial growth. They explained that the recent increase in FCBGA demand has tightened the supply of ABF—a raw material for build-up layers—thereby heightening the need for alternative materials.

Analyst Cho said, “Based on references for bonding sheets and build-up films, we expect initial mass production of low-dielectric films for domestic PCB manufacturers to begin between the fourth quarter of 2026 and the first quarter of 2027.”

He also highlighted the expansion into new application areas. “As FPCBs replace wire harnesses, the penetration rate is expected to trend upward,” he noted, adding, “Initial shipments for the robotics sector are expected in the third quarter of 2026, and for the defense sector in the fourth quarter of 2026.”

INNOX Corporation is also expected to begin contributing significantly to earnings. The company began shipments last April, and its current annual production capacity (CAPA) stands at 20,000 metric tons. Of this, 10,000 metric tons are covered by long-term supply agreements (LTAs) with rechargeable battery cell manufacturers.

Analyst Cho explained, “Volumes are expected to increase sequentially starting in the third quarter,” adding, “The medium- to long-term guidance is to reach an annual production volume of 15,000 metric tons and achieve the break-even point (BEP) by 2028.”

He also highlighted the company’s attractive valuation. “Both the 12-month forward price-to-earnings ratio (PER) and price-to-book ratio (PBR) are at historic lows,” he said, emphasizing that “the trailing PBR of 1.1x is significantly lower than the KOSDAQ average of 2.2x.”

He added, “If earnings growth is confirmed in the second half of the year—driven by INNOX Corporation’s full-scale operations and the diversification of sales channels for its core businesses, printed circuit boards and semiconductor materials—the re-rating of the company’s multiples will accelerate.”