"Innowireless, Profit Expected to Soar in 2022... Right Time to Buy"

[Asia Economy Reporter Jang Hyowon] Hana Financial Investment on the 14th projected that Innowireless's profits will grow rapidly after the 4th quarter of this year, recommending it as a good buying opportunity and setting a target stock price of 90,000 KRW.

Kim Hongsik, a researcher at Hana Financial Investment, stated in a report, "We present Innowireless, along with RFHIC and Sollid, as the top preferred stocks in the 5G network equipment sector."

The reasons for the recommendation are ▲Although the 3rd quarter performance was weak due to delayed domestic and overseas sales, a remarkable improvement in performance is expected in the 4th quarter ▲Considering recent small cell orders, high sales and profit growth are expected in 2022 ▲Due to concerns over the 3rd quarter performance and worsening supply and demand of 5G equipment stocks, short-term stock prices have plunged, increasing price merit ▲In 2022, in-building/28GHz related equipment stocks are likely to be the center of attention.

Researcher Kim said, "Innowireless recorded weaker-than-expected results in the 3rd quarter, largely due to delayed sales in key markets such as domestic and the US," adding, "However, in the 4th quarter, sales approaching 30 billion KRW and operating profit of about 4 billion KRW seem achievable."

He also said, "As 5G investment resumes in domestic and export markets, especially small cell sales will achieve remarkable growth," and judged, "Even considering only the increase in small cell sales, sales growth of over 50% compared to this year is likely in 2022."

He continued, "In 2022, domestic 5G in-building investment will be in full swing, and small cells are likely to be installed mainly in buildings as substitutes for 28GHz base stations," adding, "Given this, among 5G equipment stocks, few companies will attract as much market attention as Innowireless, and it is expected to emerge as the leading 5G stock next year."