[Click eStock] "Yisol, Focus on New Product Momentum from Next Year Onwards"
[Asia Economy Reporter Oh Ju-yeon] Kiwoom Securities analyzed that WiSol's performance declined in the second quarter due to order delays caused by the novel coronavirus disease (COVID-19) and seasonal inventory adjustments. Regarding the stock price, it stated that the first half performance has already been reflected, and it is now time to focus on new product momentum from next year onward. Accordingly, it maintained the investment opinion of 'Buy' and the target stock price of 25,000 won.
According to Kiwoom Securities on the 26th, WiSol's sales in the second quarter of this year were 70.1 billion won, down 32% compared to the same period last year, while operating profit recorded 1.4 billion won, an 88% increase.
Researcher Jang Min-jun diagnosed, "It is understood that the impact of reduced smartphone manufacturing volume from major customers due to COVID-19 was significant."
The third quarter is expected to have sales of 92 billion won and operating profit of 9 billion won. Although orders for Saw Filter products were delayed due to weak demand in the first half, it is explained that demand for mid- to low-priced products from customers is steady from the third quarter. Demand in the Greater China region is also expected to recover rapidly.
Reflecting this, sales for this year are expected to decrease by 10% year-on-year to 334.2 billion won, and operating profit is expected to fall by 44% to 22.2 billion won.
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Researcher Jang said, "The year-on-year profit decline due to the performance drop in the first half is unavoidable. However, from the second half, the volume of mid- to low-priced products from major customers is expected to increase significantly compared to the first half, and profitability is expected to improve due to the fixed cost effect reduction of module products and the recovery of sales in the Greater China region, so performance recovery is expected to proceed."
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