[Click eStock] "Jaeyeong Solutec, Full-Scale Improvement in Earnings Expected"

On the 21st, KB Securities forecasted that Jaeyoung Solutek's performance improvement will be in full swing due to growth in the upstream industry and changes in the lineup of major clients.

Jaeyoung Solutek operates the Nano Optics Division (VCM, Encoder, OIS) and the Mold Division (electronic products, automotive parts, distribution & logistics). It is currently an analysis that attention should be paid to the business growth potential of the Nano Optics Division.

In a report on the same day, KB Securities researcher Kim Hyun-gyeom stated, “The smartphone market is expected to confirm a bottom this year and see a 5% shipment growth next year,” adding, “Next year, major clients’ smartphone policies are expected to expand foldable phones from the premium line to the mass-market line, and existing bar-type phones are expected to see an increase in OIS application in the mid-to-low price line, leading to specification upgrades and rationalization of the number of models.”

Researcher Kim Hyun-gyeom said, “Since the proportion of mid-to-low price phones among major clients is estimated to be about 70-80%, the specification upgrades and reduction in the number of models in the mid-to-low price line are expected to benefit Jaeyoung Solutek, which focuses on the mid-to-low price lineup, and a performance turnaround is anticipated due to the increased proportion of high-priced OIS within AF actuators.”

Furthermore, growth in scale is also expected. He said, “We have recently succeeded in entering the premium line OIS of major clients,” and added, “With the expansion of the Vietnam factory, we have secured a production capacity of 3.6 million OIS units per month, so the entry of new premium models (FlipZ, S series) is expected to become visible in the future.”

He also stated, “Profitability improvement is expected through process efficiency and yield stabilization,” and forecasted, “The development of technology that drives OIS without intermediate parts has improved price competitiveness, and the completion of restructuring in the Mold Division will also contribute to profitability improvement.”

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