[Click eStock] "Patron, In Line with 1Q Estimates This Year... Earnings Growth Expected"

[Asia Economy Reporter Lee Jung-yoon] KB Securities maintained its buy rating and target price of 17,000 KRW for Patron on the 22nd, estimating that the company's Q1 sales and operating profit this year will meet consensus estimates.

Patron's Q1 sales this year are estimated at 358.6 billion KRW, up 8% year-on-year, and operating profit is expected to increase by 28% to 23.3 billion KRW, aligning with estimates. Regarding this, KB Securities analyst Lee Chang-min said, "The supply issues of AP (Application Processor) caused by foundry shortages are being resolved, leading to normalization of Samsung Electronics' smartphone production plant operating rates," adding, "Sales for Samsung Electronics' 2022 new models such as Galaxy S22 and Galaxy A23 are beginning in earnest."

He continued, "The modularization of heart rate sensors for the Galaxy Watch has led to an increase in ASP (Average Selling Price) and supply volume," explaining further. The analyst also predicted expanded sales and improved profitability compared to the same period last year due to a noticeable increase in Patron's market share within customers for the Galaxy S22 camera module.

Patron's annual sales this year are projected to be the highest ever. The analyst estimated Patron's annual sales at 1.53 trillion KRW, a 17% increase from the previous year, and operating profit at 99.7 billion KRW, up 27%. He analyzed, "Order performance for core products such as camera modules and sensors is improving, and as the applications for cameras diversify, continuous demand growth is expected."

He added, "In particular, the increase in demand for automotive cameras and the full-scale expansion of the metaverse device market are expected to lead to structural growth in the camera module market," and evaluated, "Patron, as one of Samsung Electronics' main suppliers of camera modules, is expected to benefit in various ways from this."

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