[Click eStock] "Interplex, Expected to Return to Operating Profit in 3 Years"

[Asia Economy Reporter Park Jihwan] IBK Investment & Securities maintained a 'Buy' rating on Interflex on the 5th, expecting the company's operating profit to turn positive this year for the first time in three years. The target price was raised by 44% from the previous 12,500 KRW to 18,000 KRW.

Kim Unho, a researcher at IBK Investment & Securities, analyzed, "Interflex's second-quarter sales are expected to increase by 22.4% from the first quarter to 72 billion KRW," adding, "Sales of new products from domestic clients are expected to occur during the second quarter, and RF sales from Chinese clients are expected to maintain the first-quarter level."

It was explained that the proportion of domestic customers will exceed 80% for the time being, and operating losses are expected to continue until the second quarter. However, the deficit size is projected to decrease significantly compared to the first quarter.

In particular, full-scale business normalization is expected from the second half of the year.

Researcher Kim Unho stated, "Second-half sales are expected to more than double compared to the first half, and the profitability of new applications is expected to be higher than that of previous products," adding, "Especially, the operating profit margin in the second half is likely to recover to previous normal levels." As a result, operating profit this year is expected to turn positive for the first time in three years since 2017.

Researcher Kim said, "The recent stock price decline fully reflects the poor first-half performance, and considering the performance improvement in the second half, the stock is undervalued."

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