[Click eStock] "Seoul Semiconductor, Expected to Benefit from Mini LED TV Next Year"

[Asia Economy Reporter Park Jihwan] Kiwoom Securities evaluated on the 23rd that Seoul Semiconductor is expected to take a leading position in the mini LED TV market, which is anticipated to lead the LED industry next year, by leveraging the ultra-small chip Wicop and the lens-free Black Hole technology. The investment opinion was maintained as 'Buy' with a target price of 23,000 KRW.

Researcher Kim Jisan of Kiwoom Securities stated, "Although there was strong performance centered on Wicop for TVs for two consecutive quarters, the 4th quarter is inevitably affected by the sharp drop in the KRW-USD exchange rate and temporary product mix deterioration." In particular, the 4th quarter is expected to be impacted by rapid KRW appreciation and temporary product mix weakening, requiring a lowered performance outlook. Accordingly, the operating profit estimate was revised down from 20.2 billion KRW to 13.8 billion KRW.

However, a significant performance improvement is expected next year. Researcher Kim said, "In the process of the mini LED TV market's full-scale growth, Seoul Semiconductor will play a leading role based on technological superiority," adding, "With the recovery of automobile demand, sales of headlamps adopting Wicop and indoor lighting using SunLike are expected to expand." Along with this, the Vietnamese subsidiary is expanding its lineup to include High Power products for lighting, and profit contributions based on high operating rates are expected to begin in earnest.

Researcher Kim emphasized, "The keyword for the LED industry next year will be mini LED TV," and added, "The market size is expected to be larger than initially anticipated, with a global total exceeding 4 million units, including 3 million units combined from Samsung Electronics and LG Electronics."