[Click e-Stock] "Solid Continues Stable Profit Generation... Target Price Raised"

On March 12, Hana Securities raised its target price for Solid to 20,000 won and maintained its 'Buy' investment rating.

Hongshik Kim, a research analyst at Hana Securities, stated in a report released that day, "This decision reflects the upward revision of earnings forecasts following the expected earnings surprise in the fourth quarter of 2025 and the recent increase in valuation multiples for the telecommunications equipment sector."

Kim analyzed that despite Solid's continued stable profit generation since 2022, the stock price has not risen due to vague performance concerns. He noted, "Although the company turned an operating profit in 2021, achieved 27.6 billion won in operating profit in 2022, and recorded operating profit in the 30 billion won range for three consecutive years from 2023 to 2025, the stock price continued to decline. This can be attributed to persistent concerns about Solid's performance due to poor results across most domestic telecommunications equipment companies from 2021 to 2024."

Looking ahead, he forecasted that the stock price would rise alongside profit growth. Kim explained, "We expect continued profit growth based on the recovery of the US, European, and domestic markets from 2026 to 2027, and the expansion of in-building equipment is likely to continue in the 5G and 6G era. Although dramatic performance changes are unlikely due to the high base, the stock price has significant potential to rebound sharply even with slight changes in performance, underpinned by stable profit generation."

The announcement by AT&T in the United States to increase its capital expenditures (CAPEX) was also mentioned as a positive factor. Kim commented, "With AT&T's announcement, a significant rise in domestic wireless telecommunications equipment stocks is expected, and Solid is highly likely to see its stock price rise ahead of profit growth, as was the case in 2019 and 2020."

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