[Click eStock] "KMW, Best Performance Expected in Second Half... Time to Buy"

Hana Financial Investment Report, Global 5G Investment Expected to Increase

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained a buy rating and a target price of 100,000 KRW for KMw on the 10th, expecting record-high earnings in the 3rd to 4th quarters.

Hong-sik Kim, a researcher at Hana Financial Investment, said, "Although profits in the first half of the year are expected to decline compared to the previous year, worsening investment sentiment, the focus should now be on earnings from the 3rd quarter of this year through the 2nd quarter of next year," adding, "The second half earnings and long-term performance through next year have not yet been reflected in the stock price."

Looking at the short-term sales outlook for June to July, the earnings forecast for the second half is optimistic. This is because sales of filters for Zhongxing Telecommunications Equipment Corporation (ZTE) are favorable, and if sales to NTT Docomo begin in earnest following Rakuten, sales in Japan are expected to gradually increase.

Researcher Kim said, "Domestic sales have also been on the rise since June," and explained, "If existing U.S. carriers Verizon and T-Mobile proceed with investments as originally planned despite traffic issues, there could be a surprise strong performance in the second half."

Accordingly, the company is expected to set a record high in earnings starting from the 3rd quarter of this year. The company's performance is anticipated to be determined by sales in domestic, China, Japan, the U.S., and India markets, and unless unexpected situations arise, the sales increase trend is expected to continue in the domestic, Japanese, and Chinese markets from June. Sales in the U.S. and India are also expected to occur by the end of the year at the latest.

Researcher Kim forecasted, "Due to the spread of untact culture caused by the COVID-19 pandemic and the surge in traffic, 5G investments are expected to increase worldwide," adding, "Considering that record-high earnings may be achieved in the 3rd to 4th quarters, the stock price will gradually move."

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