BH, Reasons for the Unified Target Price Increase Following the iPhone 14 Launch

[Asia Economy Reporter Jang Hyowon] The target stock prices for BH are being uniformly revised upward by the securities industry.

According to the financial investment industry on the 12th, among the four securities firms that presented target prices for BH this month, three raised their target prices. One firm newly presented a target price. The average target price is 46,250 KRW, which is 45.4% higher than the closing price of 31,800 KRW on the 8th.

BH's upward momentum is driven by the iPhone 14. The market share of Samsung Display for iPhones is expanding, and BH's share within Samsung Display is also increasing simultaneously. In particular, BH is expanding supply centered on the highly profitable Pro and Pro Max models in this model, which is analyzed to increase earnings visibility.

Also, the initial production volume of the iPhone 14 is higher compared to the previous model, which is positive. The initial production volume of the iPhone 13 was 25 million units, whereas the iPhone 14 is 34 million units. Additionally, the rising exchange rate creates a favorable environment for exports.

Yang Seungsoo, a researcher at Meritz Securities, said, "Sales to North American clients are expected to grow significantly through the gradual increase in BH's share within the Pro and Pro Max models," and added, "Sales to domestic clients, which have many concerns, are expected to be defended through new product supply for foldable phones."

According to financial information provider FnGuide, BH's average market consensus for Q3 sales this year is 426.1 billion KRW, and operating profit is 55 billion KRW. These are expected to increase by 27.7% and 25.9%, respectively, compared to the same period last year. Experts expect BH's Q3 performance to exceed the consensus.

Kim Rokho, a researcher at Hana Securities, analyzed, "The rarity of upward earnings amid uncertain demand for IT products in the second half is an attractive investment point," and added, "Furthermore, momentum is secured for 2023 vehicle wireless charging modules and 2024 North American client tablet and laptop performance."

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