[Click eStock] "UIEL, Clear Performance Improvement in Core Business"

On the 15th, KB Securities analyzed that UIEL is showing clear performance improvements in its core business and its new business is also making significant progress.

Han Jeyoon, a researcher at KB Securities, stated in a report on the same day, “For smartphone component companies, there is a high possibility of performance improvement when the specifications of client products change. In the case of UIEL, sales and profitability in the first quarter of this year improved noticeably,” adding, “This was mainly due to the adoption of titanium material in the Galaxy24 Ultra.”

Han said, “Since titanium material was adopted in the flagship Ultra model, it seems likely that titanium will also be used in the foldable phone to be released in the second half of the year,” and forecasted, “Therefore, the strong performance shown in the first quarter is expected to continue in the second half.”

He continued, “Additionally, the possibility of launching a mid-to-low priced foldable phone this year is embedded, so record-high performance is expected in the third quarter, and the performance level itself has risen starting this year.”

He also analyzed that the new business of electronic cigarettes has entered its main track. He said, “Sales of electronic cigarette components reached 28.6 billion KRW last year, and the annual sales this year are expected to be around 75.6 billion KRW,” adding, “This forecast does not assume PMI’s new product launches in Europe or the US market entry, and even with a conservative assumption of increased sales in Japan, steep growth is expected.”

He added, “Furthermore, since there is momentum for continued rapid growth next year through securing additional models and expanding the types of supplied components, this is considered a phase where valuation rerating can be expected due to secured growth potential.”

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