YFarm, Full-Scale 5G Launch... Performance Recovery Cycle Starts
[Asia Economy Reporter Park Jihwan] NH Investment & Securities stated on the 29th that WiPharm is expected to see a profit turnaround starting from the third quarter due to the expansion of 5G smartphone launches, and its performance is anticipated to expand significantly next year. WiPharm is an RF (radio frequency) related system semiconductor company that supplies PAM to Samsung Electronics' mid-range smartphones.
Researcher Lee Gyuha of NH Investment & Securities said, "The global PA market is dominated by Broadcom, Skyworks, and Qorvo from the U.S., which hold about 90% of the global market share. The related market is expected to grow from approximately $6 billion in 2018 to $10.4 billion in 2025 due to the expansion of 5G." Last year, due to the impact of COVID-19, customer shipments slowed down sharply, and in the first half of this year, the shortage of semiconductor supply delayed the launch of mid-range 5G smartphones, resulting in poor performance.
However, analysis suggests that the profit turnaround cycle will begin from the third quarter. This is because Samsung Electronics' major 5G mid-range smartphones equipped with WiPharm's PA modules will be launched in earnest starting in September. In 5G smartphones, the number of PA modules per device has doubled compared to 4G, with 4 to 5 modules installed per unit, so performance is expected to increase rapidly compared to the past.
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Researcher Lee said, "This year's sales are expected to be 72.1 billion KRW, and operating profit is expected to recover to 4.8 billion KRW." He added, "Although a loss was recorded until the second quarter, operating profit is expected to turn positive with 2.5 billion KRW in the third quarter." He emphasized, "The performance recovery cycle is expected to continue next year due to the recovery of customer shipments and the expansion of mid-range 5G model launches equipped with the components."
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