[Click eStock] "BH, Q3 Sales Expected to Surpass 300 Billion Won"

Hana Financial Investment Report

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained its buy rating on BH on the 3rd and raised the target price by 13% from the previous level to 26,000 KRW. This adjustment was based on the judgment that performance visibility has been secured for the second half of the year.

In the second quarter, BH's sales amounted to 162.4 billion KRW, with an operating loss of 1 billion KRW. Sales increased by 54% compared to the same period last year, and the operating loss was reduced, significantly shrinking the scale of the operating loss. Kim Rok-ho, a researcher at Hana Financial Investment, said, "Although the smartphone shipments of domestic clients decreased in the second quarter, preparations for the second half were made proactively," adding, "Sales volume for North American clients remained favorable despite it being the second quarter, and factory operations were optimized to secure visibility for second-half performance."

The expected sales for the third quarter are 307.7 billion KRW, and operating profit is projected at 37 billion KRW, representing increases of 30% and 22% respectively compared to the same period last year. This marks the first time quarterly sales are expected to surpass 300 billion KRW. Sales to North American clients will be maximized in this quarter, and for new models, BH is expected to benefit from favorable price increases. Among existing models, the 6.1-inch display specification, which recorded the highest sales volume, is expected to see a price increase from BH's perspective due to specification changes. Researcher Kim Rok-ho explained, "For the 6.7-inch model, detailed specifications have been upgraded, allowing supply at prices comparable to previous levels," and added, "As some RF-PCB suppliers' market shares shrink, BH may also benefit from this shift."

Concerns about BH had previously arisen due to a significant deterioration in performance in the fourth quarter of last year and the first quarter of this year. At that time, there were doubts about performance visibility, which required confirmation of results from the normalization of factory operations to resolve. Researcher Kim Rok-ho stated, "These concerns have been alleviated through the second-quarter results, and performance visibility has been secured going forward," emphasizing, "Attention should be paid to the momentum of North American client performance in the second half and the diversification of the front-end industry with expanded sales of 5G antenna cables for EVs."

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