[Click eStock] "Rn2Tech, High Growth Expected with Global 5G Investment"

[Asia Economy Reporter Hyunseok Yoo] Meritz Securities announced on the 20th that RNT Technology is expected to experience high growth due to global 5G investments. No investment opinion or target price was provided.

RNT Technology is a company that produces components for wireless communication equipment such as base stations, repeaters, and small cells, based on LTCC (Low Temperature Co-fired Ceramic) material technology, as well as CMOS sensor packaging substrates, battery protection devices for secondary batteries, and LTCC powder for wireless communication filter materials.

Researcher Jisoo Jung of Meritz Securities stated, "With the expansion of global 5G investments, sales of related materials and components are expected to increase, and high growth is anticipated in the battery protection device sector due to the increase in applicable applications." He added, "Sales and operating profit in 2020 are expected to be 23.4 billion KRW and 4.2 billion KRW, respectively, representing increases of 11.9% and 46.3% compared to the previous year." He further noted, "Despite external uncertainties, the company is expected to continue its trend of top-line growth and profitability improvement."

Researcher Jung also forecasted that RNT Technology will continue to achieve high growth this year. The expected sales and operating profit for this year are 34.1 billion KRW and 12.1 billion KRW, respectively, which are increases of 45.4% and 191.1% compared to the previous year. He emphasized, "In the 5G communication equipment sector, Samsung Electronics' resumption of domestic investments and expanded sales to U.S. telecom companies are expected, and shipments to major Chinese customers are projected to remain at the previous year's level or slightly increase." He added, "In India, the 5G frequency auction schedule delayed by the COVID-19 pandemic is set to resume in 2021, and if investments are made, additional top-line growth is possible."