RF Tech, Q3 Cumulative Net Profit Turns Positive... "Performance Turnaround"

[Asia Economy Reporter Hyunseok Yoo] RF Tech achieved its highest sales in six years, recording cumulative sales of 240 billion KRW in the third quarter despite domestic and international uncertainties caused by COVID-19.

RF Tech announced on the 15th through a disclosure that its cumulative consolidated sales for the third quarter of this year reached 243.5 billion KRW, an approximately 19% increase compared to the same period last year (204.3 billion KRW), and net profit for the same period reached 12.6 billion KRW, successfully turning profitable. Operating profit also recorded 6.7 billion KRW, similar to last year.

The IT mobile components business, RF Tech's core business, saw cumulative third-quarter sales increase by 17.8% compared to the same period last year, maintaining a stable growth trend.

An RF Tech official stated, “We expect to maintain continuous growth next year due to factors such as the launch of new flagship smartphones by our clients. Additionally, since the end of last year, we have formed a task force to expand the IT mobile components business area and are currently collaborating with other companies on practical IT-related product development. We are striving to contribute to new sales generation through visible results next year.”

RF Tech’s 5G antenna business, promoted as a new growth engine, and its subsidiary RF Bio’s HA filler business also maintained steep growth, with cumulative third-quarter sales increasing by 16.6% and 92.4% respectively compared to the same period last year.

An RF Tech official said, “We expect the 5G antenna business to see a significant increase in overseas orders starting from the fourth quarter of this year and next year. Considering the passage of the US infrastructure investment bill and the ongoing US new frequency auction estimated at 50 trillion KRW, the outlook for the global telecommunications equipment market next year is also positive.”

Additionally, RF Tech’s HA filler products have significantly increased their overseas sales ratio through approvals for overseas product licenses this year (Europe, UK, Indonesia, Vietnam). Furthermore, efforts are being accelerated to obtain product licenses targeting countries with high filler demand such as China, Russia, and Latin American countries.

The newly initiated botulinum toxin business is also progressing smoothly, aiming to start construction of a new factory by the end of March next year and complete the factory and preclinical trials by the end of 2023.

An RF Tech official emphasized, “As sales growth continues across all business divisions of the company, the performance, which was somewhat sluggish due to the impact of COVID-19 last year, will turn around significantly starting this year. Compared to other companies in the 5G industry, RF Tech’s corporate value is undervalued in terms of price-earnings ratio (PER) and price-to-book ratio (PBR).” He added, “All remaining convertible bonds (CB) were converted following the conversion request in April this year, so the overhang issue (potential excess supply in the stock market) has also disappeared.”

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