[Click eStock] AFR Riding the US 5G 'Spring Breeze' (Comprehensive)

[Asia Economy Reporter Junho Hwang] Hana Financial Investment has raised the target stock price of HFAR, a wired and wireless network equipment company that spun off independently from SK Telecom's in-house venture in 2000, to KRW 63,000 per share and changed its investment opinion to 'Buy'.

On the 30th, Kim Hongsik, a researcher at Hana Financial Investment, stated, "With the expansion of coverage by North American telecom operators, large-scale fronthaul orders are underway, and the backlog amount to be reflected within the year has exceeded KRW 200 billion," adding, "As C-band commercialization begins and telecom companies present aggressive coverage expansion goals, the total order amount is likely to increase as we enter the second half of the year."

Even if HFAR fails to secure orders from Verizon, its operating profit is expected to reach KRW 41.5 billion this year. However, considering competitors, the possibility of failing to secure orders is low. Even assuming it secures less than 50% of the total order volume, exports are estimated to grow 172% year-on-year to KRW 296.2 billion.

Researcher Kim explained, "Although investment sentiment in equipment stocks has been dampened due to continued poor performance of telecom equipment companies, it is time to draw attention to HFAR, which is proving through its performance that the investment cycle toward North America has returned."