Korea’s Kiwoom Securities has projected a downturn in the performance of Innox Advanced Materials for the latter half of the year. The decline can be attributed to the diminishing market share of encapsulation films designed for WOLED, in conjunction with persistently tepid front-end demand.
Innox Advanced Materials’ sales for the third quarter are predicted to experience a drop of 19% from the previous year, amounting to 107.6 billion won ($79.6 million). Concurrently, the operating profit is anticipated to decrease by 44%, settling at 15.4 billion ($11.4 million). Innox’ sales in 2023 are projected at 414.5 billion ($306.7 million), which is a dip of 15% from the prior year. The operating profit might settle at 54.3 billion won ($40.2 million), declining by 44%. In contrast, the projections for 2024 are more optimistic with sales expected to rise by 24% and the operating profit anticipated to climb by 83% as LG Display is likely to increase WOLED orders, as we recently learned based on Samsung’s projected demand for supplies in the face of lukewarm adoption of QD-OLED TVs.
