[Click eStock] "Oisolution Expected to Achieve Q4 Performance Similar to Previous Quarter Due to 5G Investment Delay"

[Asia Economy Reporter Eunmo Koo] Eugene Investment & Securities forecasted that Oisolution will achieve earnings at the same level as the previous quarter in the fourth quarter due to continued delays in 5th generation (5G) investments. The investment opinion was maintained as 'Buy,' and the target price was lowered to 65,000 KRW.

Oisolution's consolidated sales for the third quarter this year were 30.2 billion KRW, a 50.1% decrease compared to the same period last year, and operating profit was 5 billion KRW, down 74.7%, according to preliminary estimates. Researcher Jongseon Park of Eugene Investment & Securities explained in a report on the 5th, "The positive aspect of the third-quarter performance is that despite a significant decline in wireless product sales due to delays in 5G investments, sales of FTTH and MSO wired products nearly doubled compared to the same period last year, and while sales were similar to the previous quarter, profitability is gradually improving."

In the fourth quarter, earnings are expected to remain at the previous quarter's level due to continued delays in 5G investments. Eugene Investment & Securities estimated Oisolution's fourth-quarter sales at 31.1 billion KRW and operating profit at 5.1 billion KRW, representing decreases of 38.2% and 57.7%, respectively, compared to the same period last year. Researcher Park predicted, "The fourth quarter of last year saw strong performance as domestic 5G investments were actively made, but this year, due to the impact of COVID-19, 5G investments continue to be delayed, so fourth-quarter earnings will be at the previous quarter's level."

The target price was lowered from 78,000 KRW to 65,000 KRW, but the investment opinion was maintained as 'Buy.' Researcher Park explained, "Although the stock price has fallen about 15.0% over the past three months, with 5G investments expected to proceed actively after the U.S. presidential election and some orders from Verizon occurring, the stock price is expected to turn upward along with earnings recovery."

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