[Click eStock] "Hi-Vision System, Multiple New Growth Drivers Expected"

Shinhan Investment Corp. analyzed on the 4th that Hi-Vision System is expected to have multiple new growth drivers. No investment opinion or target price was provided.

Shinhan Investment Corp. evaluated Hi-Vision System as having a strong moat in inspection equipment not only for handsets but also for various new markets. Researcher Choi Seunghwan stated, "Inspection equipment is directly linked to quality issues, making diversification difficult," and added, "Since the early days of smartphones, the company has established a solid entry barrier by supplying to major North American and domestic companies."

He explained, "Even after market maturation, sales of various inspection equipment have grown due to increased camera adoption, performance improvements (such as folded zoom), and new functions (3D sensors, pressure, motion, etc.). Last year, sensing and folded-related equipment accounted for 50% of handset sales, remodeling and upgrades 25%, while camera module inspection equipment accounted for only 25%."

He identified Hi-Vision System's next growth drivers as mixed reality (MR) devices and on-device expansion, secondary batteries, automotive electronics, bio, and semiconductor equipment. Researcher Choi said, "At Apple's annual Worldwide Developers Conference (WWDC), an AI strategy is expected to be unveiled along with an expansion of Vision Pro's release regions," adding, "A turnaround in the high-end handset market atmosphere and growth resumption driven by various sensors required by MR are anticipated."

He evaluated, "Secondary battery inspection equipment achieved high growth this year with order amounts between 50 billion and 100 billion KRW. Automation equipment for bio reagent foreign substance inspection and semiconductor AOI equipment are at the early stages of localization, marking a significant point with the first sales expected this year."

Hi-Vision System recorded sales of 48.2 billion KRW and operating profit of 5.6 billion KRW in the first quarter, representing increases of 30.1% and 26.7% year-on-year, respectively. He stated, "Due to a clear seasonal pattern of lower performance in the first half and higher in the second half, performance momentum is expected in the latter half," and evaluated, "Considering multiple momentum factors in both the core and new businesses this year, it is an attractive investment timing."

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