[Click eStock] "BH, Momentum Secured with Earnings Upgrade"…Target Price Upward Revised

[Asia Economy Reporter Lee Jung-yoon] Hana Securities maintained its buy rating on BH on the 7th, reflecting the increase in operating profit for this year and next year, and raised the target price from the previous 41,000 KRW to 48,000 KRW.

BH's sales for the third quarter of this year are expected to be 438.5 billion KRW, a 31% increase compared to the same period last year, and operating profit is forecasted at 58.3 billion KRW, up 33%. These results exceed the consensus estimates.

BH's performance for the fourth quarter of this year and the first half of 2023 has been revised upward. This is because companies supplying displays to North American clients are experiencing unstable yield rates, leading to an expected increase in BH's market share within Samsung Display's client base. Consequently, BH's supply volume is also estimated to increase.

Additionally, Samsung Display is reportedly facing difficulties in procuring flexible printed circuit boards (RFPCBs), which is analyzed as a situation that could increase BH's supply volume. Kim Rok-ho, a researcher at Hana Securities, stated, "With the expansion of market share between Samsung Display and BH in both panel and RFPCB sectors, we expect a positive impact in the fourth quarter of this year and the first half of 2023."

He added, "The rarity of upward revisions in performance amid uncertain demand for IT products in the second half of the year is an attractive investment point," and continued, "We are maintaining BH as our top small- and mid-cap stock preference, as it secures performance momentum with automotive wireless charging modules in 2023 and tablets and laptops for North American clients in 2024."

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