[Click eStock] "Interplex, H2 Sales Growth Expected... Target Price Up 55%"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained its investment opinion on Interflex on the 18th, expecting sales growth in the second half of this year, and raised the target price by 54.5% from the previous 11,000 KRW to 17,000 KRW.

Park Kangho, a researcher at Daishin Securities, stated, "Interflex's total sales last year were 457.1 billion KRW, a 45.6% increase compared to the previous year, and the operating loss (14.7 billion KRW) is estimated to have decreased compared to 2018 (66.2 billion KRW)." He evaluated that "the increase in sales of flexible PCBs (digitizers) for Galaxy Note 10 and the new reflection of sales to China positively contributed to the overall sales growth."

He particularly pointed out the possibility of a turnaround this year.

Researcher Park Kangho explained, "In the second half of 2020, flexible PCB sales (digitizers) for Galaxy Note are expected to be reflected, and additional digitizers (flexible PCBs) are anticipated to be applied to foldable phones." He added, "If adopted, the increase in operating rate in the second half will reduce fixed cost burdens and enable profit expansion."

He also said, "Besides domestic strategic clients, if R/F PCB supply to Chinese smartphone companies and display supply beyond camera modules are pursued, sales may exceed estimates." He forecasted, "This year, total sales will increase by 9% compared to the previous year to 498.2 billion KRW, and operating profit will turn positive to 9.6 billion KRW."