[Click eStock] "Rino Gong-yeop Expected to Benefit from Semiconductor Market Expansion"

[Asia Economy Reporter Lee Jung-yoon] Daishin Securities maintained a buy rating and a target price of 200,000 KRW for Rino Industrial on the 15th, anticipating that the expansion of the semiconductor market will lead to an increase in the number of customers and sales channels.

Rino Industrial's sales in the fourth quarter of last year decreased by 27% compared to the previous quarter to 56.1 billion KRW, and operating profit fell by 29% to 22.8 billion KRW, slightly exceeding estimates. Researcher Lee Subin of Daishin Securities explained, "The fourth quarter is traditionally an off-season with many one-time costs such as year-end inventory adjustments and bonuses at customer companies," adding, "Although sales and operating profit decreased compared to the previous quarter, sales and operating profit increased by 35% and 38%, respectively, compared to the same period last year."

He continued, "Sales of test sockets to overseas semiconductor customers remain solid, and continuous performance growth is expected in 2022," and noted, "The medical device division has largely recovered since COVID-19, but securing additional customers remains a challenge."

Rino Industrial's sales this year are projected to rise 16% year-on-year to 326.2 billion KRW, and operating profit is expected to increase by 14% to 133.31 billion KRW. As fabless (semiconductor design companies) customers diversify and new semiconductor chip development becomes more active, it is expected to create opportunities for Rino Industrial to expand its sales channels. The researcher also stated, "Rino Industrial's technological capabilities are among the world's best, and the benefits from the expansion of the upstream industry are expected to continue."