[Asia Economy Reporter Park Jihwan] Kiwoom Securities on the 5th presented a 'Buy' investment opinion and a target price of 18,000 KRW for Hi-Vision System, expecting meaningful performance in the 4th quarter as demand for inspection equipment continues.
Jang Minjun, a researcher at Kiwoom Securities, stated, "The 3rd quarter recorded sales of 51.8 billion KRW and operating profit of 7.1 billion KRW, representing increases of 69% and 608% respectively compared to the previous year." It is analyzed that the ToF-related inspection equipment, which began delivery at the end of the 2nd quarter, started to be recognized as sales from the 3rd quarter, resulting in strong performance.
He also forecasted meaningful performance in the 4th quarter. From the perspective that sales are recognized when the delivery of inspection equipment is completed and setup is finished, it is evaluated that expectations for overall sales growth in the second half of the year are high.
Next year's sales are expected to be 181.6 billion KRW and operating profit 17.9 billion KRW, representing increases of 11% and 27% respectively compared to this year. Researcher Jang Minjun explained, "Although the first half is a seasonal low period, we view positively the possibility that delayed volumes from the second half of this year will be recognized in the first half of next year." Additionally, he added that expectations for products related to new models of major customers in the second half of next year are also positive.
Researcher Jang said, "Changes in smartphone camera modules will continue next year," and added, "If we focus on the increase in the number of adopted cameras and changes aimed at implementing AR and other functions in the 5G environment, we expect related inspection equipment to continue evolving."
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