by Park Soyeon
Published 16 Jul.2024 07:49(KST)
Daishin Securities maintained a buy rating and a target price of 40,000 KRW for Jahwa Electronics on the 16th, forecasting record-high performance in the third quarter.
They anticipated the full-scale production of OIS (Optical Image Stabilization) for Apple iPhone 16 and an expansion of supply to China. Third-quarter sales are estimated at 220.1 billion KRW, and operating profit at 23.5 billion KRW, representing increases of 105.2% year-on-year and a return to profitability. Entering the peak season and with annual sales and operating profit for 2024 projected at 783 billion KRW and 70.1 billion KRW respectively, a record performance is expected with a 55.6% year-on-year increase and a return to profitability.
In the second half of 2024, investment focus on Apple iPhone 16 is expected to expand to two models applying folded zoom cameras, and the number of models supplied with OIS will also increase to two, anticipating the highest performance in the second half. The sales proportion of iPhone 16 Pro and Pro Max is projected to be about 60%, up 5.5 percentage points from the previous year. OIS will be supplied jointly with LG Innotek.
Apple has adopted AI intelligence, and replacement demand within the iPhone is expected in response to the AI environment. iPhone 16 is expected to achieve the highest sales since iPhone 13, and Apple conducted inventory adjustments for iPhone 15 through price reductions in the second quarter of 2024. It is judged that Apple will focus on expanding iPhone 16 sales. The third-quarter performance of Apple suppliers is expected to be further upgraded.
Park Kang-ho, a researcher at Daishin Securities, said, "OIS sales are expected to increase due to the premium model expansion strategies of Chinese smartphone companies such as Huawei," adding, "Considering the start of OIS supply for Galaxy S25 in the fourth quarter, a positive ripple effect is expected in the second half of 2024 with the launch of new models by global smartphone companies."
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