[Click eStock] "Sekonix, The First Year to Overcome This Year's Slump"

[Asia Economy Reporter Ji Yeon-jin] IBK Investment & Securities announced on the 23rd that it has given a buy rating and a target price of 14,000 KRW for Sekonix, stating that stable earnings growth is expected this year due to increased sales of automotive parts, marking a turning point out of stagnation, with continuous growth anticipated in the future.

Kim Un-ho, a researcher at IBK Investment & Securities, said, "The application range of camera modules is expanding, showing high growth potential as they are used in various tools utilizing automobiles and IoT. Among domestic camera lens companies, Sekonix has secured the most leading position in mobile and automotive sectors," adding, "The current stock price is undervalued compared to earnings due to concerns following the recent trading suspension and relisting."

Sales this year are expected to increase by 11.3% compared to last year. Due to semiconductor supply shortages, performance is weaker than initially planned at the beginning of the year, but operating profit is projected to turn positive from a loss last year to 16.6 billion KRW this year. Thanks to cost structure improvements at overseas subsidiaries, stable operating profit is expected to be maintained going forward.

Researcher Kim stated, "Sekonix's competitiveness lies in optical technology," adding, "Using this as a foundation, the company is expanding its business areas to smartphones, automobiles, and home appliances. It has extended its business scope not only to camera modules but also to lamps, securing a stable growth base through product mix improvement, customer expansion, and new products. Continuous performance improvement is expected in the future with various lenses for AR/VR and automotive applications, as well as autonomous driving-related products."