KL Tech(082390): Dominating C/F rework market
- Company update
- Reiterate BUY and TP of KRW17,500
Investment points:
1) The company is providing C/F rework services to both Samsung Electronics(SEC) and LG Philips LCD(LPL), dominating the domestic C/F rework outsourcing market.
2) Given the size and technological barrier of the C/F rework market, KL Tech is likely to continue to dominate the market, not worrying about a new player entering the market.
3) For being a service provider, KL Tech can enjoy remarkably high OP margin compared to a manufacturer.
4) OP to grow 90% in FY06 and 45% in FY07.
5) Currently undervalued at P/E 7x. |
|
