[Click eStock] "KoAsia Expands System Semiconductor Business... Reflected in Stock Price"

[Asia Economy Reporter Hyunseok Yoo] Hana Financial Investment analyzed on the 15th that expectations for the expansion of the system semiconductor business of CoAsia are beginning to be reflected in the stock price. No investment opinion or target price was presented.

CoAsia operates businesses in system semiconductors, IT component distribution, LED, camera modules, and audio components. Among its core businesses, it is focusing on expanding the system semiconductor business (CoAsia Semi).

CoAsia recorded sales of 499.1 billion KRW last year, a 13.72% increase compared to the previous year. Hana Financial Investment estimated that the business contributing most to sales growth was the IT component distribution, which is the main business of separate sales. On the other hand, operating loss was 4.25 billion KRW, and net profit was 9.44 billion KRW, marking a return to deficit.

Kim Kyungmin, a researcher at Hana Financial Investment, said, "The variable that most significantly affected the return to deficit was the small-scale sales in the system semiconductor business (CoAsia Semi)," adding, "This is because economies of scale were not achieved."

Hana Financial Investment evaluates that CoAsia's system semiconductor business has sufficient growth potential going forward. He said, "For the system semiconductor business (CoAsia Semi) to contribute meaningfully to the profit and loss, it must realize sales of several tens of billions of KRW through large-scale, turnkey project orders," and added, "To have large-scale projects contribute to performance in the system semiconductor business, it is necessary to have an engineer pool of several hundred people and endure a painful period until orders are secured." He further stated, "We judge that CoAsia has the ability to endure and expand."

Hana Financial Investment forecasted that the strengths of CoAsia's core business will lead the growth of the system semiconductor business. He explained, "Through the distribution business, which is the parent business, they can quickly grasp the demand of potential customers," and "They have secured an engineer pool by striving to build an ecosystem with Samsung Electronics Foundry DSP (Design Solution Partner) companies in the same industry, and they have a cash cow by operating a parts business through subsidiaries."

Finally, researcher Kim emphasized, "Although it is cautious to make performance estimates, we believe CoAsia has a high possibility of becoming the largest bridge between the semiconductor design and foundry industries," and "The increasing number of front industries of projects with visible orders being oriented toward automotive electronics is expected to be positive for the stock price."

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