[Click eStock] "BH to Deliver Record-Breaking Performance Next Year"

KB Securities Report

[Asia Economy Reporter Minji Lee] KB Securities maintained its buy rating and target price of 24,000 KRW for BH on the 9th, expecting the company to continue its earnings improvement trend.

For the fourth quarter of this year, sales are forecasted at 295.7 billion KRW and operating profit at 31.2 billion KRW, representing growth of 28% and 1130% respectively compared to the same period last year. Although shipments of the 2021 model from North American clients are expected to decrease by 10% from 100 million units to 90 million units over six months, BH's sales are projected to increase.

Researcher Changmin Lee said, “Instead of the mini model, which had poor sales, BH is supplying RFPCBs mainly for the Pro and Pro Max models, showing favorable trends in both supply volume and average selling price compared to last year,” adding, “With Samsung Electro-Mechanics withdrawing from the RFPCB business, BH’s market share among clients is rising.” For domestic clients, strong sales of foldable phones with higher component unit prices continue, and some revenue related to next-generation flagship phones is reflected, leading to an expected 18% increase compared to the same period last year.

Next year, BH’s expected sales are 1.0662 trillion KRW and operating profit 99.5 billion KRW, representing growth of 15% and 69% respectively compared to the previous year, potentially setting a record high performance. This is because Samsung Electro-Mechanics’ exit from the RFPCB business has increased BH’s market share within Samsung Display from 55% to 70%, which is expected to lead to expanded sales with major domestic and North American clients.

KB Securities researcher Changmin Lee stated, “Although there are risks of production disruptions due to semiconductor supply shortages and power outages in China, even if unexpected order cuts occur from clients, considering the high brand loyalty of the core consumer base of North American clients, demand will not disappear but be deferred.” He also expects benefits as the sole RFPCB supplier, as domestic clients’ foldable smartphone sales are projected to increase significantly from 7 million units last year to 14 million units.

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