[Click eStock] "Jaeyoung Solutec, Growth Continues with Expansion of Premium Smartphone Actuator Applications"

Valuefinder analyzed on the 13th that Jaeyoung Solutek is expected to see performance growth as the application of actuators increases in the Galaxy flagship and premium lineup. The investment opinion was set to buy, with a target price of 1,000 KRW.

Lee Chungheon, CEO of Valuefinder, stated, "The proportion of voice coil motors (VCM) is decreasing, while the proportion of high-value-added optical image stabilization (OIS) is rapidly increasing," and added, "Since OIS has the highest unit price, an increase in its sales proportion is expected to improve profitability through product mix enhancement."

Jaeyoung Solutek is a specialized company in actuators, which are core components of smartphone cameras. It is explained that this is a period when actuator specifications are rising, highlighting the performance growth trend of related companies. As competition among global smartphone manufacturers intensifies, the camera performance of mid- to low-priced smartphones is also improving.

CEO Lee emphasized, "It is important that the Galaxy smartphone lineup applying the company's actuators expands to drive sales growth," and said, "Since successful deliveries were made to newly entered models this year, the volume of actuators installed in two Galaxy A models and the Galaxy FE model is expected to increase from next year."

He continued, "Preparations for new entries such as foldable phones are also steadily underway," and stated, "Jaeyoung Vina, the Vietnam factory, is making proactive investments in anticipation of volume increases, and the monthly OIS production capacity is expected to expand to 4 million units."

The company also decided to discontinue the mold business division to restructure its business focusing on profitability and improve management efficiency. Through this, significant improvements in profit and loss structure and financial restructuring have been achieved, and funds for new business initiatives can also be secured.

CEO Lee said, "As part of strengthening the core business, we are actively developing new products such as spring-type OIS," and added, "With the trend of smartphones becoming thinner, demand for new types of actuators is increasing, and the spring type allows height adjustment."

He further stated, "If the customer quality tests are successfully completed, it is expected to be applied from next year," and added, "This year’s sales are projected to increase by 19.7% year-on-year to 128.3 billion KRW, and operating profit is expected to rise by 135.2% to 11.5 billion KRW."

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