[Click eStock] "BH, Expected to Achieve Record High 3Q Performance"... Target Price Up 18%

[Asia Economy Reporter Lee Jung-yoon] KB Securities announced on the 14th that it maintains a buy rating on BiH and has raised the target price by 18% to 39,000 KRW. This is due to upward revisions in sales forecasts for North American clients, resulting in estimated net income attributable to controlling shareholders increasing by 18.9% and 7.7% for this year and 2023, respectively.

BiH's sales for the third quarter of this year are estimated at 436.5 billion KRW, a 31% increase compared to the same period last year, and operating profit is expected to reach 59 billion KRW, a 35% increase, marking the highest quarterly performance ever.

It is expected to benefit from strong sales of new smartphone models from North American clients, particularly higher-end models. With the prices of premium models frozen, the differentiation in specifications highlights the relative strength of high-priced models. BiH supplies rigid-flexible printed circuit boards (RFPCBs) mainly for premium models to North American clients.

Additionally, due to production disruptions of low-temperature polycrystalline oxide (LTPO) displays by competitors, Samsung Display's (SDC) estimated supply volume of displays for North American clients' smartphones continues to be revised upward. Lee Chang-min, a researcher at KB Securities, explained, "BiH supplies 70-80% of the RFPCBs for SDC's smartphone displays for North American clients, so a trickle-down effect is expected."

BiH's strong performance is expected to continue through next year. Sales for 2023 are estimated at 1.8247 trillion KRW, a 16% increase from the previous year, and operating profit is projected to rise 8% to 167.1 billion KRW, marking the third consecutive year of record-breaking performance.

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