[Click eStock] "KMW, Waiting for Orders in Q2~Q3"

Korea Investment & Securities Issues 'Buy' Rating and 80,000 KRW Target Price... Closing Price on 28th at 48,650 KRW

[Asia Economy Reporter Kum Boryeong] KM Double U (KMW) is analyzed to be awaiting a bountiful season of orders in the 2nd to 3rd quarters.

According to Korea Investment & Securities on the 2nd, the news about Nokia's (NOKIA) management difficulties is not a major concern for KMW. Choi Cheolhee, a researcher at Korea Investment & Securities, stated, "Although Nokia is struggling in the early stages of the 5th generation (5G) mobile communication service market share, it is compensating with active research and development (R&D), and its performance has turned profitable due to the introduction of 5G. Last year's high dependence on Nokia sales (about 70%) for KMW was due to the already entered domestic market, but export promotion is underway with many SI companies, so from this year, sales diversification will occur and dependence on Nokia will rapidly decrease."

Global 5G-related orders are expected to be concentrated in the 2nd to 3rd quarters. This is because revenue related to base stations increases from the favorable weather in the 2nd quarter to early 4th quarter. Looking at last year's domestic 5G investment cycle, KMW's revenue was also concentrated in the 3rd quarter (38.7%). Researcher Choi said, "New equipment orders are many from the 2nd quarter to early 3rd quarter. This year as well, since many countries including China, Japan, the United States, India, and Europe are newly investing in 4G and 5G equipment, related orders will be concentrated in the 2nd to 3rd quarters. At this point, where domestic communication equipment deliveries, which were temporarily suspended in the 4th quarter last year, resumed in the 1st quarter, it is time to focus on overseas orders leading to revenue growth."

Korea Investment & Securities gave KMW a 'Buy' investment opinion with a target price of 80,000 won. The closing price on the 28th was 48,650 won.

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