[Click eStock] "Finetechnics to Supply Built-in Hinges for Foldable Smartphones... Full-Scale Sales Growth This Year"

[Asia Economy Reporter Oh Ju-yeon] Hana Financial Investment analyzed on the 12th that Pine Technics, which operates LED lighting and IT component manufacturing businesses, is expected to see sales growth starting in 2020 due to the development of built-in hinges. Along with this, it presented a 'Buy' investment opinion and a target price of 6,150 KRW.

Researcher Kim Doo-hyun explained, "Pine Technics has developed built-in hinges for foldable smartphones based on precision mold technology and metal material processing capabilities," adding, "Sales of built-in hinges are expected to start in earnest as the client company plans to launch foldable smartphones in 2020." He diagnosed, "Sales of the IT components division, which had been sluggish, will continue to rise centered on built-in hinge products, and there is ample room for stock price appreciation at the current price level."

According to Hana Financial Investment, assuming the shipment volume of the client company's foldable smartphones reaches about 4.8 million units this year, consolidated sales are expected to grow by more than 50% year-on-year based on built-in hinge sales. Since built-in hinge components are essential for the development of high-quality smartphones, Pine Technics is expected to fully benefit from the growth of the foldable smartphone market thanks to its high technological capabilities.

Researcher Kim projected that Pine Technics' sales for this year will be 201.9 billion KRW and operating profit 19.3 billion KRW, representing increases of 50.3% and 179.7% respectively compared to the previous year.

Kim assessed, "Since the foldable smartphone market is still in its early introduction stage, the sales growth potential of built-in hinges remains high, and Pine Technics also has sufficient capacity to respond to the increasing volume."

He added, "Along with sales growth, issues that had previously deteriorated profitability are being resolved, making 2020 the time to show definite performance improvement, overcoming the past poor results."

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