[Click eStock] "KMW, Time for Gradual Material Highlight"

Hana Financial Investment Issues 'Buy' Rating and 120,000 KRW Target Price... Closing Price on 7th at 76,500 KRW

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that the time for gradually highlighting the factors related to KMw is approaching.

On the 8th, Hana Financial Investment gave KMw a 'Buy' rating with a target price of 120,000 KRW. The closing price on the 7th was 76,500 KRW.

There are prospects for stock price growth factors to appear this month. Kim Hongsik, a researcher at Hana Financial Investment, said, "Although exports to the U.S. have not yet fully started, once equipment supply to Verizon through Samsung and direct delivery to Dish Network occur, KMw's U.S. export volume will be much larger than expected," adding, "Looking at the current progress, due to the COVID-19 situation, it has been difficult to normalize operations at the Vietnam factory, so Samsung is likely to rely heavily on outsourcing for a large portion of U.S. export volume. This is because some vendors using Chinese-made parts produced unsatisfactory results in product testing. Considering the symbolic significance of Verizon, the number one U.S. telecom company, it is highly likely that Samsung will significantly increase the proportion of KMw, the top supplier with the most experience supplying equipment in the U.S. market and well known to Verizon."

Sales to Dish Network are also estimated to be considerable, given that they are direct deliveries. Hana Financial Investment conservatively expects U.S. regional sales to reach 600 billion KRW next year.

Domestic sales are also expected to turn to an upward trend in 2021?2022. Researcher Kim said, "Sales to the three domestic telecom companies, which were not expected, are likely to remain at a high level for the next two years. This is because the government linked the 3G and 4G frequency reassignment prices to the number of 5G base stations installed and applied an additional 3% tax credit for 5G investment," adding, "With a rapid increase in net 5G subscribers and the emergence of many 5G strategic phones, competition among operators is intensifying again, and government pressure for 5G investment is increasing. Therefore, domestic 5G investment, which slowed down this year due to COVID-19, is expected to show a rising pattern again."

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