[Click eStock] "MCNex Surpasses Last Year's Sales Estimates... High Growth Expected This Year"

[Asia Economy Reporter Lee Jung-yoon] Daishin Securities maintained a buy rating and a target price of 70,000 KRW for MCNEX, expecting high growth across all businesses this year, driven by increased sales of camera modules and OIS (optical image stabilization components), as well as expanded sales of automotive cameras.

MCNEX's operating profit in the fourth quarter of last year was 12.4 billion KRW, falling short of the estimated 16.6 billion KRW, but sales increased by 31% year-on-year, exceeding estimates. Kang-ho Park, a researcher at Daishin Securities, said, "The increase in sales and operating profit for two consecutive quarters is viewed positively, and we consider MCNEX to be a mid-sized camera module company that will benefit significantly in line with Samsung Electronics' smartphone sales," adding, "The sales growth in the fourth quarter is interpreted as a differentiating factor compared to other competitors."

MCNEX is expected to achieve high growth in sales and operating profit this year. Researcher Park estimated MCNEX's sales this year to rise 45.2% year-on-year to 1.47 trillion KRW, and operating profit to increase by 247% to 82.1 billion KRW. He stated, "With the increase in Samsung Electronics' smartphone sales, camera module sales will expand, and sales of automotive cameras related to autonomous driving will also increase, entering a high-growth phase in 2022."

He further evaluated, "OIS has reaffirmed its competitiveness and is expected to contribute to increased sales and operating profit in 2022," adding, "As a primary supplier to Hyundai Motor Company, MCNEX is prioritizing the development of cameras and DCU (Digital Cockpit Unit) for electric vehicles such as Genesis, and full-scale sales are expected from the second half of the year."

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