[Click eStock] "KH Vatec, Earnings Improvement Expected from Q2"

IBK Investment & Securities Report

IBK Investment & Securities expects KH Vatec's performance to improve significantly from the second quarter and has maintained a 'Buy' rating while raising the target price to 30,000 KRW.

On the 31st, Kim Unho, a researcher at IBK Investment & Securities, said, "KH Vatec possesses growth momentum through the production of core foldable components," adding, "The possibility of expanding new products and new clients remains high, indicating strong potential for additional growth."

KH Vatec's main products include hinges, IDC, brackets, and end plates for batteries. Currently, hinges account for the largest proportion, and this trend is expected to continue for the time being, according to the researcher's analysis.

Although IDC is still in the development stage, it is judged that mass production is highly likely in 2024 due to the application of new materials. Brackets are expected to benefit from changes in the competitive landscape and entry into the electric vehicle industry.

The researcher added, "Sales of end plates for batteries have high growth potential but will begin to materialize significantly from 2025," and "The company plans to enter markets beyond the automotive sector as well."

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