[Click eStock] "Seoul Semiconductor, Stock Undervalued... Target Price Up"

[Asia Economy Reporter Song Hwajeong] Shinhan Financial Investment on the 30th raised the target price for Seoul Semiconductor from the previous 19,000 KRW to 21,000 KRW, viewing the current stock price as significantly undervalued. The investment rating was maintained as 'Buy.'

Kim Chanwoo, a researcher at Shinhan Financial Investment, said, "The stock price has fallen sharply compared to its peak," citing factors for the decline such as weakening set demand, lower-than-expected mini LED shipments, and limited market share expansion despite industry restructuring. He explained, "There is upside potential even when applying the price-to-earnings ratio (PER) bottom," adding, "The current stock price is considerably undervalued, and the expansion of sales toward electric vehicles is also an expectation. Additionally, the LCD market conditions are expected to confirm a bottom within two quarters, which forecasts a stock price increase."

Seoul Semiconductor's fourth-quarter earnings this year are estimated at 315.3 billion KRW in sales, a 1.5% increase year-on-year, and an operating profit of 29.6 billion KRW. Researcher Kim said, "Variables in performance include the seasonal off-season and ongoing semiconductor supply disruptions," adding, "Although the degree of supply disruption has eased, the weakened TV demand itself is likely reflected."

Shinhan Financial Investment projected Seoul Semiconductor's earnings for next year to be 1.3242 trillion KRW in sales, a 1.6% increase, and 109.6 billion KRW in operating profit, a 10.4% increase. Researcher Kim explained, "Investment points include increased sales of automotive LEDs and expanded application of mini LEDs in TVs," adding, "Automotive LED sales in 2022 are expected to reach 245 billion KRW, a 35.4% increase from the previous year, and the likelihood of using mini LEDs in premium TVs is high, which will expand the application of mini LEDs for TVs."

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