[Click eStock] "Pine Technics to Begin Full-Scale Mass Production in the Second Half"

[Asia Economy Reporter Eunmo Koo] Hana Financial Investment forecasted that Pine Technics' IT components division sales will explosively increase starting from the third quarter of this year, when full-scale mass production begins, considering that its clients will launch two foldable smartphone models in the second half of the year. The investment opinion and target stock price were maintained at 'Buy' and 6,150 KRW, respectively.

On the 1st, Hana Financial Investment estimated that Pine Technics' consolidated sales for the second quarter of this year would reach 35.5 billion KRW, a 43.5% increase compared to the same period last year, and operating profit would grow by 7.3% to 1.1 billion KRW. Researcher Dohyun Kim of Hana Financial Investment stated in the report, "The IT components division slightly lowered production volume of foldable smartphone parts due to COVID-19 but maintained a production level similar to the previous quarter, achieving sales of 25.1 billion KRW." He also predicted, "The LED division's expected sales are 10.4 billion KRW, a slight increase of about 7% compared to the previous quarter, so the consolidated performance for the first half of this year will show modest growth."

However, considering that clients will launch two foldable smartphone models in the second half of this year, sales of the IT components division are expected to explosively increase from the third quarter when full-scale mass production begins. Additionally, die-casting products, which have been underperforming, are expected to contribute to performance improvement as sales volume increases with the launch of clients' mid-to-low-end models in the second half.

Based on exclusive technology, the expansion of supply volume is also expected to continue. Hana Financial Investment estimated this year's sales at 197.5 billion KRW, a 47.1% increase from last year, and operating profit at 16.9 billion KRW, a 143.9% increase. Researcher Kim said, "Global companies including domestic complete phone manufacturers as well as those in China and the United States are successively announcing foldable smartphone launches in the second half, signaling the imminent blooming of the foldable smartphone market," adding, "Pine Technics' performance is expected to show steady growth from the third quarter this year as the possibility of diversifying its client base increases."