[Click eStock] "RFHIC, Stock Level-Up Expected Due to Increased US Exports"

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced on the 5th that it maintains a buy rating and a target price of 60,000 KRW for RFHIC, projecting steep profit growth due to increased export volumes to major U.S. telecommunications companies, and designates it as the top pick within the network equipment sector.

Kim Hong-sik, a researcher at Hana Financial Investment, stated, "From the second half of this year, the customer base will expand beyond Samsung Electronics to system integrators (SI), and considering the commercialization schedule of 3~4 gigahertz (GHz) band 5G by U.S. DISH Network and Verizon's 3~4 GHz frequency commercialization plans for 2022~2023, there is a high possibility of purchase order (P/O) issuance in April-May and export commencement in June-July this year." He added, "The establishment of a joint venture with a global semiconductor company to enter the MMIC (microwave monolithic integrated circuit) business is expected to be completed by June at the latest."

He added, "Despite entering a long-term notable performance improvement trend from 2022 after confirming the bottoming out of last year's results, the short-term stock price increase has been minimal, so we recommend an investment strategy that takes price merit into account."

The company is expected to see a sharp increase in U.S. sales starting from the end of June. As U.S. telecom companies such as Verizon and DISH Network have recently been actively securing 5G coverage through investments in mid-band frequencies, purchase orders are expected to be issued from this month, potentially leading to significant export results in June-July.

U.S. telecom companies will see a substantial increase in available 3~4 GHz band frequencies by 2023, and partnership requests to domestic small and medium 5G equipment and component companies with strengths in mid-band frequencies from global SI companies are also surging.

The establishment of a joint venture with a global semiconductor company is also expected to be formalized in June. RFHIC has completed all funding preparations for this, and after the joint venture is established, a business transition to the MMIC format is anticipated. Researcher Kim said, "An active response system for ultra-high frequencies after 5G+ is expected to be established, and dependency on specific wafer companies may decrease, which is positive. Power semiconductor performance results may also begin to materialize, GAN TR exports to U.S. telecom companies will start in earnest in June, and expectations for new business success may increase, leading to a stock price level-up."

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