[Featured Stock] Namuga, Essential 3D Sensing for Metaverse Implementation... Samsung Electronics Expected to Adopt Following Apple

[Asia Economy Reporter Hyungsoo Park] Namuga is showing strong performance. The analysis that it is undervalued compared to its earnings seems to have influenced the stock price.

As of 9:49 AM on the 7th, Namuga is trading at 10,900 KRW, up 5.83% from the previous day.

Research Alom estimated that Namuga will achieve sales of 519.8 billion KRW and operating profit of 21.7 billion KRW this year. It is expected to successfully turn to a large-scale profit. The target stock price was set at 14,500 KRW.

Lee Donghyun, senior researcher at Research Alom, explained, "The improvement in performance was driven by the increase in average selling price and volume due to the supply of flagship front and rear camera modules," adding, "Compared to camera module competitors, the current market capitalization of 140 billion KRW is significantly undervalued."

He continued, "Namuga is the only global company that possesses all three depth recognition technologies," and added, "It has a track record of supplying to Intel, Samsung Electronics, and domestic and overseas autonomous driving companies."

Furthermore, "Time-of-Flight (ToF) technology is an essential sensing technology for virtual reality (VR) and augmented reality (AR) devices used to implement the metaverse," he emphasized, "ToF technology is divided into Indirect and Direct methods, and Namuga is developing both technologies."

He analyzed, "Samsung Electronics applied ToF to some flagship models but quickly withdrew it," explaining, "This was because the high price was not justified due to a lack of killer content." He added, "Apple applies ToF to all models," and expressed hope that "Samsung Electronics will also be able to apply ToF at any time."

Additionally, "Namuga improved its structure as a Samsung Electronics ToF vendor in 2020 and succeeded in a performance turnaround this year," he said, adding, "Additional performance level-up is expected when ToF is adopted."

He analyzed, "Namuga is mass-producing 3D sensing cameras (Stereo type) for Samsung Electronics' AI robot vacuum cleaners," and "plans to mass-produce medical VR devices in the second half of next year."

The researcher predicted, "The expansion of advanced driver-assistance systems (ADAS) application is also a factor for multiple upgrades," and "the vehicle camera module market is expected to grow at an average annual rate of over 30% until 2025."

Namuga supplies in-cabin cameras to the global autonomous driving solution company W.