[Market Focus] Solid Surges Over 10% on Highlighted Price Attractiveness

With stable profit generation highlighting the stock's attractiveness, Solid's shares are showing strength.

As of 9:23 a.m. on March 12, Solid was trading at 12,940 won, up 1,230 won (10.50%) from the previous session.

On this day, Hana Securities maintained its "Buy" rating on Solid and raised its target price from 15,000 won to 20,000 won, stating that "although the company has continued to generate stable profits since 2022, the stock price has been undervalued due to vague performance concerns."

Hongshik Kim, a researcher at Hana Securities, commented, "The target price of 20,000 won is based on a price-to-book ratio (PBR) of 3, which is a conservative application considering historical cases and peer groups." He added, "Solid is expected to continue profit growth through next year, backed by market recovery in the United States, Europe, and Korea."

The company's performance was also positively evaluated. After posting sales of 294.8 billion won and operating profit of 33.4 billion won last year, this year’s sales are estimated to reach 308.8 billion won (up 4.7% year-on-year) and operating profit 35.9 billion won (up 7.5% year-on-year).

In particular, AT&T's announcement of increased capital expenditures (CAPEX) is considered a strong catalyst for a stock rally. Kim noted, "The current situation is reminiscent of 2019-2020. While the company is already delivering solid results, the stock's gains have been modest, so there is a high possibility that the share price will catch up in a lagged manner this year."

He continued, "Given the likelihood of a significant rise in the stock as part of a sector rotation within telecom equipment, a 'buy and hold' strategy is valid. As the stock remains attractively priced, we recommend advancing the timing of purchases."

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