[Click eStock] "Actro, Expected Earnings Improvement This Year Due to Increased Camera Module Integration"

[Asia Economy Reporter Hyunseok Yoo] KB Securities analyzed on the 13th that Actro's performance will continue to improve this year due to the advancement of camera modules and an increase in the number of units equipped. No investment opinion or target price was provided.

KB Securities expects Actro's performance to improve this year. Despite the sluggish sales of the Galaxy S20 caused by the COVID-19 pandemic, the sales volume of Actro's main model, the Galaxy S20 Ultra, was found to be more robust than expected. The folded zoom equipped in the Galaxy S20 Ultra has a higher unit price compared to existing parts, and it is expected that profitability will accelerate with the expansion of folded zoom demand.

Researcher Sang-guk Lim of KB Securities said, "In 2020, camera modules are expected to be highlighted around large sensors and folded zooms to realize high megapixels and high resolution," adding, "The advancement of camera modules and an increase in the number of units equipped will sustain Actro's strong performance."

He emphasized, "The adoption rate of multi-cameras is increasing for flagship and mid-to-low-end smartphones, and growth in actuator parts is expected due to the increased proportion of camera components in smartphone manufacturing costs and the increase in the number of units equipped," adding, "Supply of parts to China, including Oppo, Vivo, and Xiaomi, is expected to be in full swing in the third quarter of 2020. The full-scale expansion of folded zooms in China and the increased multi-camera adoption rate in mid-to-low-end smartphones are also positive factors for performance improvement."

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