[Click e Stocks] KM Double U, 5G Starts Now

[Asia Economy Reporter Junho Hwang] Hanwha Investment & Securities maintained the target price of KMw at 100,000 won on the 19th. The target price presented in September last year was upheld due to expectations of domestic and international 5G investments, which had been sluggish this year due to the novel coronavirus disease (COVID-19).

KMw posted results below market expectations in the third quarter of last year, with sales of 74.5 billion won and operating profit of 6 billion won, due to delays in the 5G investment schedules globally, including in Korea. Similar performance is expected in the fourth quarter.

However, the analysis suggests this year will be different. The multiple-input multiple-output (MIMO) 5G equipment market is expected to grow rapidly in global markets such as the United States and Japan. In particular, in the U.S., full-scale investment in 5G will begin once the frequency auction takes place this month. The entry of a new carrier, Dish, is likely to cause a surge in equipment demand.

Hanwha Investment & Securities reflected these factors and projected KMw's performance for next year at sales of 1.0619 trillion won and operating profit of 250.7 billion won.