[Click eStock] "BH, KOSPI Transfer Planned... Expecting Improved Supply and Demand"
Kiwoom Securities expected that BH would create a stable investment environment through its plan to transfer listing to the KOSPI on the 17th.
The day before, BH announced that it would submit the agenda for the transfer listing to the KOSPI and delisting from KOSDAQ at the shareholders' meeting. The future schedule is expected to proceed with the preliminary listing review application after the agenda is approved, followed by the transfer listing to the KOSPI upon passing the review.
Oh Hyunjin, a researcher at Kiwoom Securities, explained, "We expect the transfer listing to the KOSPI to enhance value evaluation and secure liquidity, thereby creating a stable investment environment," adding, "In particular, we anticipate an increase in investment attractiveness through improved supply and demand."
He continued, "As the inflow of institutional and foreign investors is expected to be activated, the recently sharply increased short-selling balance due to borrowed shares is likely to face strong repayment pressure," and added, "The exclusion from KOSDAQ150, which limits future short-selling position building, is also favorable." BH is evaluated to have experienced an increase in short-selling balance due to mechanical trading despite a favorable business environment, resulting in high stock price volatility.
BH's short-term performance expectations are low due to a decrease in shipments to major customers in the first half of this year. However, the stock price is believed to have reflected this, having fallen more than 20% from last year's peak. In the second half of this year, a performance rebound is expected through the launch of the next-generation iPhone and an expansion of the automotive electronics segment by reflecting the wireless charging business performance.
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Researcher Oh said, "The mid- to long-term growth potential remains valid," adding, "Due to the expansion cycle of OLED-applied IT devices, starting with tablets in 2024 and followed by laptops in 2026, BH's FPCB demand is expected to continuously increase," and further stated, "With a secured mid- to long-term growth roadmap and expected improvement in supply and demand, this is considered a buying opportunity."
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