[Click eStock] "BH, Expecting Strong Performance in the Second Half"

KB Securities analyzed on the 21st that BH will achieve favorable performance in the second half of the year. The investment opinion of 'Buy' and the target stock price of 35,000 KRW were maintained.

KB Securities expects BH's sales and operating profit in the third quarter to reach 492.8 billion KRW and 53.2 billion KRW, respectively. Sales are expected to increase by 4% compared to the same period last year, but operating profit is expected to decrease by 10%. Lee Chang-min, a researcher at KB Securities, said, "The second half is BH's peak season because sales related to new smartphone models from North American clients, BH's major customers, occur," adding, "This year as well, with the full reflection of sales for the 2023 models of North American clients, sales to North American clients in the second half are estimated to increase by 115% compared to the first half."

He also expected sales to domestic clients to rebound. He explained, "Sales to domestic clients, which showed a sluggish performance in the second quarter, are expected to rebound," adding, "This is because sales related to the new foldable smartphone model released in August are expanding significantly in the third quarter."

With the performance rebound in the second half, KB Securities forecasted that BH will achieve sales of 1.6322 trillion KRW and operating profit of 126 billion KRW this year, representing decreases of 3% and 4%, respectively, compared to the previous year. He said, "Although sales to domestic clients have been sluggish for a prolonged period, better-than-expected performance is anticipated in the second half," adding, "This is because sales related to new smartphone models for North American clients are expected to exceed early-year expectations."

He explained, "Since 2019, North American clients have been intentionally increasing the proportion of other suppliers to reduce the market share of Samsung Display, which has held the number one internal market share," adding, "However, due to ongoing yield issues among other suppliers in the production of small and medium-sized OLED panels, Samsung Display is expected to maintain its market share at the previous year's level this year as well." He added, "BH is expected to benefit accordingly."

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