[Featured Stock] DB HiTek Up 6%... Buying Influx on Earnings Expectations

[Asia Economy Reporter Lee Seon-ae] DB HiTek is showing strong performance on the 12th.

As of 9:35 AM, it is trading at 64,100 KRW, up 5.78% from the previous trading day. It rose more than 6% to reach 64,400 KRW. This is interpreted as buying demand flowing in due to expectations of improved earnings.

Hana Financial Investment said about DB HiTek, "Considering the order backlog, the supply shortage situation is intensifying, and the environment centered on foundry suppliers is continuing," adding, "Foundry manufacturing prices are rising, and the strategy of diversifying manufacturers will benefit."

Yuanta Securities stated, "The expected annual net profit for this year is 230 to 240 billion KRW, corresponding to a price-earnings ratio (PER) of about 10 times," and added, "Although it appears to be trading at a premium compared to the past average PER of 8 times, considering the increased depreciation burden of 50 billion KRW due to the shortening of the depreciation period, it is still only at the PER level of 8 times." They continued, "As this year's production capacity growth rate has significantly increased compared to the past, the previously undervalued factor of 'limited Q growth' is being resolved, and it is expected to drive stock price increases."