[Click eStock] "KH Vatec, Hinge Prices Rise... Earnings 'Up'"

Korea Investment & Securities forecasted on the 17th that KH Vatec's hinge supply for Samsung Electronics' new foldable phone model will increase, and the selling price will also rise. The investment opinion 'Buy' and the target price of 24,000 KRW were maintained.

Korea Investment & Securities expects KH Vatec's sales and operating profit in the second quarter to reach 76.6 billion KRW and 6.1 billion KRW, respectively, representing increases of 42.5% and 63.9% compared to the same period last year. These figures exceed the forecasted sales of 71.7 billion KRW and operating profit of 5 billion KRW.

Researcher Cho Cheol-hee of Korea Investment & Securities said, "The hinge supply for Samsung Electronics' new foldable phone model started from the third quarter last year, but this year it began in mid-June," adding, "It is estimated that hinge business-related sales increased significantly from 19.5 billion KRW in the same period last year and 11.2 billion KRW in the previous quarter to 38.4 billion KRW this year."

Researcher Cho expected that both sales volume and selling price would rise significantly, contributing to improved performance. He explained, "The estimated shipment volume of hinges for Samsung Electronics' foldable phones by KH Vatec this year is 12.2 million units, combining old and new models," and added, "This represents a 17.1% increase compared to 10.4 million units last year, and the average ASP is expected to rise by 45.4%." He emphasized, "This year, hinge-related sales are expected to increase by 43%, from 217.2 billion KRW last year to 310.7 billion KRW."

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