[Click eStock] "CoAsia Records System Semiconductor Sales... Begins Catching Up to GUC Market Capitalization"

[Asia Economy Reporter Hyungsoo Park] DS Investment & Securities expected that CoreAsia would generate sales from system semiconductors starting this year.

Yang Hyungmo, a researcher at DS Investment & Securities, explained, "We have turnkey secured a project to supply integrated core chips for electronic cigarettes," adding, "A prototype will be released in March this year, and mass production will begin in June."

He continued, "It is a one-chip that integrates three core chips necessary for operating heated tobacco electronic cigarettes into one," and added, "It will be produced at Samsung Foundry and delivered to the final customers."

Furthermore, he emphasized, "Compared to existing products, manufacturing costs can be reduced by more than 40%, and circuit boards can be reduced by 50%, so demand is expected to be high," and estimated, "Currently, negotiations are presumed to be underway with China Tobacco and others."

He also analyzed, "It is estimated that it can be installed in new products of PMI, KT&G, and others," and "System semiconductor sales will grow significantly starting this year, and IT component performance is expected to record levels comparable to the strong performance in 2019."

He added, "The current market capitalization of 270 billion KRW hardly reflects the system semiconductor business," and said, "Currently, the company is trading at about 12% of GUC's market capitalization, indicating undervaluation."

He analyzed, "GUC received a highest price-to-earnings ratio (PER) of 75 times and an average PER of 40 times during its profit growth period," and "The current stock price is trading at a PER of 39 times based on this year's estimated performance."

Researcher Yang emphasized, "As system semiconductor performance grows significantly this year, catching up to GUC's market capitalization will begin," and "Currently, the company is recognized for its technological capabilities to perform service businesses for four companies within the US market capitalization 'Top 10'."

He forecasted, "The company is also undertaking automotive semiconductor projects to supply to S Company's German automobile manufacturer," and predicted, "Orders will increase in the future in artificial intelligence (AI), Internet of Things (IoT), and automotive industries."

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