[Click eStock] "MCNEX, Automotive Electronics Sales Begin to Rise... Target Price Up 62%"

Eugene Investment & Securities Report

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities on the 20th issued a buy rating and raised the target price for MCNEX by 62% from the previous level to 70,000 KRW.

Researcher Kyungtak Noh of Eugene Investment & Securities explained, “The camera module sector will benefit the most in this year's smartphone turnaround phase,” adding, “A revaluation of the automotive camera division is necessary due to visible sales from autonomous driving cameras in the rapidly growing automotive camera market.”

Eugene Investment & Securities expects MCNEX to record sales of 1.584 trillion KRW and operating profit of 108.7 billion KRW this year, representing increases of 18.5% and 74%, respectively, compared to the same period last year. The growth in performance is expected to accelerate in the second half of the year.

MCNEX ranks as the world's 5th largest automotive camera company and holds a dominant market share in supplying automotive cameras to domestic automakers. Demand for cameras is increasing due to the rising proportion of automotive electronics in domestic clients and the full-scale adoption of autonomous driving technology. The value of the automotive business of companies with extensive experience in supplying automotive cameras is expected to rise.

Researcher Kyungtak Noh said, “The supply of parts for electric vehicles in the first half and the visible sales of autonomous driving-related systems in the second half will lead to customer diversification and profitability improvement, which is positive,” adding, “The proportion of automotive electronics sales is expected to expand from 12% last year to 19% this year.”

The growth of smartphone cameras is also stable. Compared to last year, which was affected by the spread of COVID-19, domestic clients are expected to increase smartphone shipments by 17% this year. Additionally, the proportion of quad cameras, the number of cameras installed per unit, and the demand for camera modules are expected to increase by 12% and 30%, respectively, compared to the same period last year.

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