[Click eStock] "Optrontek, Expected Highest Sales for 2 Consecutive Years"

by Keum Boryeong

Published 25 Feb.2020 07:44(KST)

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 9,000 Won... Closing Price on 24th at 6,490 Won

[Click eStock] "Optrontek, Expected Highest Sales for 2 Consecutive Years"

[Asia Economy Reporter Geum Bo-ryeong] An analysis suggests that Optrontec's sales are expected to reach record highs for the second consecutive year.

According to Daishin Securities on the 25th, Optrontec's consolidated operating profit last year was 19.7 billion KRW, a 45.8% increase compared to the previous year. This is the highest since 2013. Kang-ho Park, a researcher at Daishin Securities, explained, "This was due to increased sales of optical filters driven by the adoption of multi-cameras in Samsung Electronics smartphones."

This year, with the expansion of the multi-camera ratio, the supply of film filters is expected to increase, potentially breaking the record for the best performance. Researcher Park estimated, "This year's sales are expected to rise 11.2% from the previous year to 265.7 billion KRW, and operating profit is estimated to increase by 33.4% to 26.3 billion KRW." He added, "In particular, a positive side effect from the COVID-19 pandemic is anticipated. Competitors' factories for optical filters are located in China, where production appears to have been weaker than expected due to COVID-19. Optrontec maintains normal operations with production plants centered in Korea and Vietnam."

The Samsung Electronics Galaxy S20 Ultra features a 108-megapixel high-resolution and 100x optical zoom folded camera. Optrontec supplied the prism components. Researcher Park analyzed, "Samsung Electronics is expected to apply folded cameras to the Galaxy Note series in the second half of this year and some models of the Galaxy A series next year. This will allow Optrontec to secure new growth opportunities through increased sales of prism components."