[Click eStock] "BH, Record High Performance and Market Share Expansion... A Buying Opportunity at Low Prices"

[Asia Economy Reporter Kwon Jae-hee] NH Investment & Securities maintained a 'Buy' rating on BH on the 15th, setting a target price of 29,000 KRW.

With North American clients expected to record their highest sales volume in 2022 and market share expanding due to competitors withdrawing from the business, BH is projected to achieve its best-ever performance this year.

First, North American smartphone manufacturers are expected to record their highest sales volume ever in 2022. In particular, the flagship products to be released in the second half of the year will have no display notch on the Pro models only, and the main camera resolution is scheduled to be upgraded, which is expected to drive demand for high-end products.

Additionally, with competitors exiting the business, BH is expanding its market share among clients, leading to anticipated performance improvements. The effect is expected to be maximized in the second half of the year when volumes increase significantly. Reflecting the expansion of North American clients and additional market share, BH's operating profit for 2022 is forecasted to reach 117.8 billion KRW, marking its best-ever performance.

BH's operating profit in the first quarter of this year recorded 18.2 billion KRW, exceeding market expectations. The strong smartphone sales of North American clients and market share expansion due to competitors' withdrawal appear to have driven the performance improvement.

Lee Gyu-ha, a researcher at NH Investment & Securities, stated, "Despite BH's solid performance and growth potential in new businesses such as automotive electronics, its valuation is at a historical low with a price-to-earnings ratio (PER) of 6.4 times based on 2022 net profit," adding, "It is a buying opportunity at a low price."

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