[Click eStock] RFHIC, Q2 Earnings Shock Expected... Target Price Downward Revision

Hana Securities forecasted on the 20th that RFHIC's second-quarter earnings would be sluggish. The investment rating was maintained as 'Buy,' but the target stock price was lowered to 40,000 KRW.

Hana Securities projected that RFHIC's consolidated sales for the second quarter would be 21.2 billion KRW, down 11% year-on-year, and that it would turn to an operating loss of 1.3 billion KRW. Kim Hong-sik, a researcher at Hana Securities, said, "The reason for the poor performance is that Samsung, the main sales client, has recently shown weak performance in the US market, and sales related to Nokia, a new client they are focusing on, have not yet materialized."

He expected the poor performance to continue through the third quarter. This is because the volume of sales to Samsung this year has been largely postponed to the fourth quarter. Also, since it is unlikely that new sales from Nokia will occur before then, the possibility of continued poor performance until the third quarter is high.

However, since the power semiconductor sector is progressing smoothly, earnings improvement is expected from the fourth quarter. He emphasized, "The establishment of joint ventures with global companies, supply of key parts to global companies, selection for national projects, and support for research and development expenses are proceeding as originally planned," adding, "At the current trend, semiconductor sector sales results are expected to appear from the fourth quarter of this year."

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