[Click eStock] "HFR Certified as Next 5G Leader"

Hana Financial Investment Issues 'Buy' Investment Opinion and Target Price of 57,700 Won... Closing Price on 12th at 34,300 Won

[Asia Economy Reporter Kum Bo-ryeong] HFCL has been analyzed as the next leading stock in 5th generation (5G) mobile communication services.

According to Hana Financial Investment on the 13th, HFCL's estimated performance for the fourth quarter of last year is sales of 79.8 billion KRW and operating profit of 11.3 billion KRW. These figures represent increases of 44.6% and 78.1% respectively compared to the previous year.

Kim Ah-young, a researcher at Hana Financial Investment, said, "Sales are expected to meet previous estimates without difficulty as continuous domestic and overseas 5G investments and sales of front-haul and Wi-Fi AP equipment, which were deferred in the third quarter, are reflected." She added, "Operating profit is expected to be 11.3 billion KRW due to continued losses in subsidiaries (net profit expected to be -3 billion KRW) and increased fixed costs of overseas corporations for overseas expansion. Rather, the increase in costs is an essential task for localization of overseas corporations and establishment of new corporations ahead of overseas 5G commercialization, indicating that the full-scale start of overseas sales is imminent."

The performance forecast for this year is sales of 406.5 billion KRW and operating profit of 45.9 billion KRW, representing growth of 123.9% and 258.6% respectively compared to the previous year. First, with the Tokyo Olympics in July this year, early commercialization of 5G is expected to reflect sales from the first quarter. Ahead of the CBRS band frequency auction in the US in June, full-scale orders are expected from the second quarter, and front-haul sales for Verizon and AT&T are estimated to occur due to 5G investments in the second half of the year. Researcher Kim said, "This year is the year when domestic 5G repeater investments begin, so expansion of sales of new domestic product lines is also expected."

Hana Financial Investment gave a 'Buy' investment opinion on HFCL and raised the target stock price to 57,700 KRW from the previous level. The closing price on the 12th was 34,300 KRW.

This content was produced with the assistance of AI translation services.