[Click eStock] "LIT, Expected to Benefit from Increased OLED Investment"

[Asia Economy Reporter Hyunseok Yoo] Mirae Asset Daewoo analyzed on the 1st that LIT is expected to benefit from the resumption of OLED investment. No investment opinion or target price was presented.

LIT is a company engaged in the display module equipment business and was listed in June 2020. As of the first quarter, it recorded sales of 6.1 billion KRW and an operating loss of 1.9 billion KRW.

Although the first quarter performance was poor, Mirae Asset Daewoo forecasted that performance improvement is possible. Researcher Kim Cheoljoong of Mirae Asset Daewoo said, "The resumption of OLED investment in the second half of 2021, which was delayed due to COVID-19, is expected."

Along with this, the merger with K-MAC conducted in March is also expected to create synergy. He explained, "K-MAC is a company specializing in OLED front-end process measurement equipment such as deposition mask overlay inspectors and lighting inspectors," adding, "Through the merger, it is expected to expand its business areas to display front-end and back-end processes as well as semiconductor equipment, and synergy from the merger is expected through economies of scale such as cost reduction and fixed cost decrease."

In particular, sales related to double OLED are expected to show significant growth. He explained, "From 2021, the launch of foldable smartphones centered on Samsung Electronics is expected to accelerate, and UTG is expected to be adopted as the Cover Window for foldable products," adding, "Accordingly, LIT, which developed and applied the first mass production of high-difficulty core UTG equipment, is expected to receive orders."

He said, "Foldable OLED shipments are expected to be 12 million units in 2021 and 16 million units in 2022," and added, "Since the Galaxy S10 model, which was the first to apply FoD in 2019, has expanded to the budget A series, sales increase due to the expansion of FoD model application is also expected."

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