[Click eStock] "KH Vatec, Expanding Demand for Titanium and Other Metal Parts"
On the 28th, IBK Investment & Securities forecasted that "KH Vatec's performance will rapidly improve due to increased demand for its main product, metal parts."
KH Vatec is an electric and electronic parts company that produces foldable hinges, display brackets (TDP) for automotive electronic components, and end plates that protect battery cells from shocks.
Lee Un-ho, an analyst at IBK Investment & Securities, stated, "Currently, hinges account for the largest portion of sales, but brackets are expanding their supply range from mobile to automotive electronics," adding, "Starting this year, related sales are expected to expand beginning with global automotive parts companies." He also predicted, "As models applying titanium metal cases become more widespread, KH Vatec's position will be strengthened."
The analyst further explained, "With the addition of core foldable components, new product effects such as titanium, and sales toward Internet Data Centers (IDCs) being reflected, both scale and profitability will improve," and forecasted, "The sales proportion of automotive electronic parts will gradually increase, continuing the trend of growth and profit improvement in the long term."
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Based on this analysis, he maintained a 'Buy' rating on KH Vatec and kept the target stock price at 25,000 won.
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