[Click eStock] "BH to Record Best Ever Q1 Performance"

KB Securities Report

[Asia Economy Reporter Minji Lee] KB Securities maintained a buy rating and a target price of 28,000 KRW for BH on the 17th.

This year, BH's sales are estimated to reach 1.2951 trillion KRW, and operating profit 125.2 billion KRW, representing growth of 25% and 76% respectively compared to the previous year. This is due to strong sales to North American clients, increased internal market share, and improved product mix. Additionally, sales growth is expected as domestic clients' foldable smartphone shipments are projected to increase significantly from 7 million units to 14 million units compared to last year.

First quarter sales are estimated at 313.6 billion KRW, a 126% increase year-on-year. Operating profit is expected to turn positive at 19.3 billion KRW, marking a record high performance. Although the first quarter is traditionally an off-season, demand from North American clients remains strong, suggesting results comparable to peak season.

Changmin Lee, a researcher at KB Securities, stated, “The flagship model released by the North American client last September has maintained steady sales momentum even after the year-end peak season. The average sales volume from September to December was 16.6 million units, but in January, 18.4 million units were sold.”

The change in the main supplied products is also positive. In the first half of last year, due to weak sales of the mini model, BH showed contrasting results compared to clients who achieved strong performance centered on the Pro and Pro Max models. However, in the second half of last year and the first half of this year, BH has been mainly supplying FPCBs for the Pro and Pro Max models, which are showing strong sales, resulting in simultaneous increases in average selling price and supply volume.

Researcher Changmin Lee added, “With Samsung Electro-Mechanics withdrawing from the FPCB business, BH's market share within Samsung Display is expected to rise from 55% to the 70% range. Sales to both North American and domestic clients are expanding.”

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