[Click eStock] "Jahwa Electronics, 4Q Results Exceed Expectations... Profit Expansion This Year"

[Asia Economy Reporter Lee Jung-yoon] Daishin Securities maintained a buy rating and a target price of 33,000 KRW for Jahwa Electronics, expecting sales to new smartphone companies to be reflected in the second quarter of this year, and stated that increasing the weighting is valid from a mid- to long-term perspective rather than a short-term one.

Jahwa Electronics recorded an operating profit of 9.2 billion KRW in the fourth quarter of last year, turning profitable, and sales increased by 8.3% year-on-year to 98 billion KRW. These results all exceeded estimates. Kang-ho Park, a researcher at Daishin Securities, said, "The supply of OIS (Optical Image Stabilization) parts for the Galaxy S22 improved the product mix and, combined with the effect of the rising KRW-USD exchange rate, operating profit margin reached 9.4%," adding, "Total sales in 2021 were 347.9 billion KRW, up 15.7% from the previous year, and operating profit turned positive to 16.65 billion KRW, showing a turnaround."

Jahwa Electronics is expected to see sales and profit growth this year due to OIS, an essential component for enhancing high-magnification zoom functions in premium smartphones. Researcher Park said, "The number of lenses increased compared to before due to the expansion of high-magnification zoom and macro (close-up) shooting functions," and "Supply of OIS to new global smartphone companies is expected in 2023."

Researcher Park also estimated that Jahwa Electronics' total sales will sharply increase from 347.8 billion KRW in 2021 to 548 billion KRW in 2023 and 704.3 billion KRW in 2024. Additionally, operating profit is expected to rise from 16.6 billion KRW last year, turning positive, to 45.3 billion KRW in 2023 and 57.4 billion KRW in 2024.

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