[Click eStock] "Interplex Benefits from Samsung Electronics' Premium Smartphone Expansion"

[Asia Economy Reporter Lee Jung-yoon] Daishin Securities maintained a buy rating and a target price of 25,000 KRW on Interflex on the 16th, expecting strong performance compared to the previous year due to increased digitizer sales driven by a higher proportion of the Galaxy S22 Ultra, Samsung Electronics' premium smartphone.

Park Kang-ho, a researcher at Daishin Securities, explained, "Although there are concerns about sales slowdown of Samsung Electronics' Galaxy S22 due to the Game Optimization Service (GOS) issue, the production ratio of the Galaxy S22 Ultra is estimated to be 45%." He added, "This is about 15-17 percentage points higher than the Galaxy S21 Ultra last year, and digitizer sales are expected to increase by 71.2% compared to the previous year."

Interflex is analyzed to show strong growth with total sales of 648.5 billion KRW and operating profit of 43 billion KRW this year, increasing by 45.1% and 1245% respectively compared to the previous year.

Researcher Park said, "Samsung Electronics is expected to focus on increasing sales of the Ultra model in the first half and the foldable Galaxy Z Fold in the second half by embedding and expanding sales of the S Pen in premium smartphones." He continued, "In particular, the Galaxy Z Fold recorded annual sales of 1.85 million units since the S Pen was first applied in 2021." He added, "The sales increase is linked to Interflex's strong performance, and sales and operating profit in 2023 are expected to grow by 21% and 38% respectively compared to the previous year, estimating the highest growth among mobile phone parts suppliers in 2022 and 2023."