[Click eStock] "BH, Forecasted to Achieve Record High Performance This Year"

[Asia Economy Reporter Eunmo Koo] BH is expected to achieve its highest performance this year.

KB Securities estimated that BH's sales this year will grow by 25% from last year to 944.8 billion KRW, and operating profit will increase by 77% to 97.6 billion KRW, setting a record high. Changmin Lee, a researcher at KB Securities, stated in a report on the 6th, "The strong sales of flagship smartphones from North American clients continue," and "With strong demand for new models and a significant increase in the proportion of organic light-emitting diode (OLED) in older models, sales to North American clients in the first half are expected to increase by 53% compared to the same period last year."

Additionally, benefits are expected from the adoption of low-temperature polycrystalline oxide (LTPO) displays by North American clients. Researcher Lee analyzed, "North American clients are estimated to introduce LTPO displays in two 2021 flagship models to reduce power consumption," and "Samsung Display's leadership in the LTPO field leads to a high market share among Samsung Display's clients, which is expected to have a trickle-down effect on BH."

The investment opinion and target stock price were maintained at "Buy" and 28,000 KRW, respectively. The researcher said, "The flagship smartphone launch of North American clients has been delayed by about 1 to 2 months compared to usual, so the seasonal peak effect will be experienced in the fourth quarter rather than the third quarter, which is positive," but also predicted, "However, amid overall intensified price reduction pressure from clients, the large-scale orders of low-priced smartphones from domestic clients will deteriorate ASP and profitability, and the relatively low-priced 6.1-inch model is showing strong sales, leading to a worsening product mix for North American clients, resulting in performance below consensus."