[THE INVESTOR] Young Poong’s earnings will improve from the second quarter boosted by its subsidiaries’ strong sales overseas, said Daishin Securities on May 30.

It turned to black with 5.3 billion won (US$4.71 million) operating profit in the first quarter, but widely missed market expectations as its IT subsidiaries underperformed, said analyst Lee Jong-hyeong. 

Its operating profit has entered an upcycle as its subsidiary Interplex has bagged a supply deal with Apple, and it will turn to black after four years, forecast the analyst. 

Its total market value is at a record low and now is the time to positively consider purchasing its stocks, said Lee and maintained a “buy” recommendation. 

Factoring in the prospects of less earnings on a standalone basis and the decline of Korea Zinc’s stock price, however, the analyst lowered the target price to 1.45 million won from 1.60 million won. 

By Hwang You-mee (glamazon@heraldcorp.com)