Hyundai Motor Securities noted that P&H Tech, a company specializing in organic light-emitting diode (OLED) materials, is expected to report poor performance this year. Hyundai Motor Securities downgraded its investment opinion on P&H Tech to 'market perform' and reduced the target price to 5,500 won, which is 0.7% higher than the previous closing price of 5,460 won.
Kim Jong-bae, a researcher at Hyundai Motor Securities, projected that P&H Tech will record annual revenue of 33 billion won and operating profit of 2 billion won this year, which represents a decline of 1 billion won in both revenue and operating profit compared to last year.
The researcher stated, 'I expect that the sales related to P&H Tech's patented materials will continue to grow as they are currently recognized by clients and supplied directly,' while adding, 'However, the material used for the light-emitting layer is supplied indirectly through panel material clients, so I expect significant performance volatility.'
The decline in P&H Tech's tablet-related sales was also cited as a burden factor. Tablets equipped with OLED panels were launched last year, but demand was weaker than expected. New tablet products are expected to be launched either by the end of this year or in 2026, resulting in a gap in demand.
The researcher pointed out, 'Considering the impact of tariffs on tablets, there seems to be downward pressure on demand,' and added, 'Sales of light-emitting materials for TVs have yet to confirm demand.'
The researcher remarked that 'a mid- to long-term perspective on P&H Tech is needed at this point,' and if we consider that patented materials are expanding, it seems that performance is bottoming out.