"CoAsia Optics, Restructuring as a Camera Module Company"

[Asia Economy Reporter Hyungsoo Park] Independent research firm ValueFinder analyzed on the 20th that the transformation of KoAsia Optics into a camera module company will lead to improved performance. They gave a 'Buy' investment rating and set a target price of 3,620 KRW.

Lee Choongheon, CEO of ValueFinder, explained, "The transformation into a camera module company, continuous acquisition of patents for optical lenses for autonomous vehicles, and the planned development of extended reality (XR) device-specific modules through collaboration with Qualcomm's design house 'InSignal' are all positive factors."

KoAsia Optics is a manufacturer and seller of lens modules for mobile phones. Last year, KoAsia entered the camera module market by participating as a strategic investor (SI) and acquiring KoAsia CM and KoAsia CM Vietnam. They expanded from mainly front high-resolution smartphone camera modules to include rear high-resolution modules as well.

ValueFinder estimates that KoAsia Optics will achieve consolidated sales of 438.8 billion KRW and an operating profit of 17.9 billion KRW this year. Sales are expected to increase by 145% compared to the previous year. Operating profit is expected to turn positive.

Lee said, "Following the supply of front cameras for mid- to low-end products of major clients, they will supply front and rear cameras for flagship models as well," adding, "It is estimated that sales reached 117.3 billion KRW in the first quarter."

He continued, "Improvement in average selling price, normalization of production volume due to Samsung Electronics' expansion of mid- to low-end lineups, and increased order volume through new model entries will lead to the lens division's return to profitability."