[Click eStock] "Jaeyeong Solutec, Turnaround in Full Swing"

KB Securities analyzed on the 8th that Jaeyoung Solutek's turnaround will be in full swing.

Kim Hyun-gyeom, a researcher at KB Securities, stated in a report on the same day, "The first quarter performance this year is expected to show sales of 36.4 billion KRW and operating profit of 3.1 billion KRW, increasing by 28.2% and 94.4% respectively compared to the same period last year," and forecasted, "The cash cows, Encoder AF and the steadily expanding Optical Image Stabilization (OIS) actuator, will drive the performance."

Researcher Kim Hyun-gyeom explained, "With the recent success of the flagship model AI smartphone sales strategy of the client company, smartphone sales of the client are expected to gain more momentum," adding, "Jaeyoung Solutek benefited from the client's mid-to-low-end model OIS supply expansion strategy by entering the Galaxy S23 FE OIS last year and supplying OIS to the Galaxy A55 this year."

He also stated, "Currently, in the AF business sector, Encoder sales are expected to expand with flagship models and new entries for foldables to be launched in the second half of the year, OIS is expected to be supplied for the client's A55 global launch (March), and VCM is estimated to enter some new A lineup models."

He continued, "Last year, we succeeded in entering the OIS for the major client's flagship line," and said, "This year and next year, new entries are highly likely due to spec upgrades of the client's flagship models (Fold, FlipZ, S series)," adding, "With the expansion of the Vietnam factory, we have secured an OIS production capacity of 3.6 million units per month (43.2 million units annually), so sales expansion and profitability improvement are expected due to increased utilization rates."

Furthermore, he pointed out FS-OIS development as a key point to watch. He explained, "This is expected to play a significant role in improving the product competitiveness of the next mid-to-low-end smartphones by minimizing camera thickness and differentiating the product."

Finally, he predicted, "Jaeyoung Solutek's performance this year will show sales of 155 billion KRW and operating profit of 15.8 billion KRW, increasing by 44.6% and 222.4% respectively compared to the previous year," and expected the causes of the performance turnaround to be the expansion of OIS sales ratio (50%), maintaining Encoder market share (over 80%) within the client company, process efficiency, and yield stabilization.

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