[Click eStock] "RnT Technology, Benefiting from Global 5G Investment Expansion... Sustaining Mid- to Long-Term Growth"

[Asia Economy Reporter Ji-hwan Park] Meritz Securities evaluated on the 24th that RnT Technology is expected to sustain mid- to long-term growth due to the benefits of global 5G investment expansion.

RnT Technology is the only domestic company with proprietary LTCC (Low Temperature Co-fired Ceramic) material technology, producing 5G wireless communication components and battery protection devices. Researcher Jisoo Jeong of Meritz Securities stated on the 24th, "With Samsung Electronics expanding its supply of 5G base stations in North America and Ericsson, the global No.1 telecommunications equipment company, adding new customers, sales of 5G components and materials are expected to increase," adding, "High growth is anticipated in the battery protection device sector due to the increase in applied applications."

In particular, analysis suggests that mid- to long-term growth will continue due to the expansion of global 5G investment. Third-quarter sales are expected to reach 7 billion KRW, a 73% increase compared to the previous year. Operating profit is expected to turn positive at 1.5 billion KRW. In the second half, the wireless communication sector is expected to improve year-on-year due to increased 5G investment by domestic and international telecom companies and increased volume from major customers such as Samsung Electronics and Chinese major clients. The registration of Ericsson as a new client, supplying components to all five major global equipment manufacturers, is also a strength. Researcher Jisoo Jeong said, "There has been steady average annual growth of 18.4% over the past five years," and added, "Most of the costs are fixed costs, so a profit leverage effect is expected with sales growth."

For the full year, sales are projected to be 31.2 billion KRW and operating profit 6.5 billion KRW, increasing by 30.6% and 58.4% respectively compared to the previous year. Expansion of applied applications is expected in the battery protection device sector. He said, "In September last year, the company was registered as a supplier to a major domestic automotive parts manufacturer, and the adoption of couplers is increasing to enhance antenna reception strength in vehicle-to-vehicle communication." Battery protection devices have so far been mainly used in home appliances, but if the range of applications expands, it is expected to contribute to performance as well as enable valuation rerating.