[Click eStock] "Rino Gong-yeop, Q1 Sales Expected to Exceed 60 Billion Won"

Hana Financial Investment Report

[Asia Economy Reporter Gong Byung-sun] Hana Financial Investment on the 23rd raised the target price for Rino Industrial from 170,000 KRW to 210,000 KRW, expecting the company's first-quarter sales this year to exceed 60 billion KRW. The investment rating was maintained as 'Buy.'

Rino Industrial's first-quarter sales this year are expected to surpass 60 billion KRW for the first time ever. Industrial indicators show that the steady increase in 5G subscribers in the upstream industries is positively impacting sales. China Mobile, a Chinese telecommunications specialist, recorded cumulative 5G package subscribers of 147 million in November last year, 165 million in December, and 169 million in January this year, approaching 200 million subscribers.

Shipments of 5G smartphones are also expected to increase. According to forecasts by telecommunications equipment company Qualcomm, 5G smartphone shipments are expected to rise from 225 million units last year to between 450 million and 550 million units this year. Kim Kyung-min, an analyst at Hana Financial Investment, explained, "It is estimated that the monthly exports of pins and sockets from local governments including Rino Industrial surpassed the monthly record of 2020 in January this year." The annual performance estimates for Rino Industrial are sales of 250.9 billion KRW, operating profit of 96.5 billion KRW, and net profit of 75.6 billion KRW.

There is also analysis that Rino Industrial's price-to-earnings ratio (PER) is at a level so high that it is difficult to find similar companies within the Korean semiconductor sector. Analyst Kim said, "Among upstream industry clients, the PER valuation of Taiwanese foundries rose from below 20 times during the 4G era to 25 times during the 5G era, which ultimately contributed to the PER revaluation (re-rating) of Rino Industrial."

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