Q4 Slump... 'Wiseol' Expected to Shine This Year

[Asia Economy Reporter Hyunseok Yoo] YSOL is expected to see improved performance this year due to new product launches.

On the 7th, according to the financial investment industry, Kiwoom Securities forecasted YSOL's estimated sales and operating profit for the fourth quarter of last year to be 81.5 billion KRW and 7.1 billion KRW, respectively, representing decreases of 4% and 11% compared to the same period last year.

Minjun Jang, a researcher at Kiwoom Securities, stated, "Although the demand from major customers appears to be steady compared to the business environment contracted by COVID-19, profitability recovery seems slow due to growth in low-profit products. We believe that profitability declined compared to the previous quarter due to the product mix caused by increased sales of some low-profit products."

However, performance improvement is expected this year due to increased volume of 5G products. Kiwoom Securities projected YSOL's sales and operating profit for this year to be 366.7 billion KRW and 31.2 billion KRW, respectively, marking increases of 6% and 40% compared to the previous year. He explained, "Existing SAW filter types are expected to see volume growth due to the downward expansion of 5G devices. Since 5G models are expanding from premium to mid-range in the current major customers' models, continuous volume expansion of single products is anticipated."

In particular, the launch of new products is also expected to aid performance recovery. He evaluated, "An increase in average selling price is expected through modularization combining SAW filters and peripheral components. The shift from single products to modularization is ongoing, and the increasing demand for modules combined with power amplifiers to support 5G bands presents an opportunity."

He emphasized, "The ultra-wideband BAW filter is currently in the development stage, and with the emergence of devices using ultra-wideband, sales of BAW filters are also expected to contribute."