[Click eStock] "BH, 2Q Earnings Expected to Exceed Consensus"

[Asia Economy Reporter Lee Jung-yoon] Hana Financial Investment maintained a buy rating and a target price of 40,000 KRW for BH on the 16th, expecting the company's second-quarter performance this year to exceed consensus estimates.

BH's second-quarter sales are expected to reach 317.2 billion KRW, a 95% increase compared to the previous year, and operating profit is projected at 21.6 billion KRW, turning profitable. These results surpass estimates by 15% and 37%, respectively. Additionally, this marks the highest performance for the second quarter to date.

Researcher Kim Rok-ho of Hana Financial Investment explained, "This is due to favorable exchange rates, strong sales of the top-tier models from North American clients, and market share expansion following competitors' business withdrawals. Since the second quarter is typically an off-season, maintaining a higher operating rate than usual was possible through stable supply for existing models, maximizing profitability improvements from preparations for upcoming products, and operating profit margin is expected to be higher compared to the previous quarter."

BH is also projected to set new records in the second half of the year, with sales and operating profit increasing by 17% and 18%, respectively, compared to the same period last year. Researcher Kim stated, "The market share expansion effect from competitors' business withdrawals is expected to be realized for the first time with the new model. The detailed specifications of OLED (Organic Light Emitting Diode) panels have been upgraded in the new model, which is presumed to have caused price increases from the perspective of FPCB (Flexible Printed Circuit Board)."

He added, "Furthermore, as the possibility of panel supply disruptions from Chinese display companies emerges, additional benefits from reflection are expected. Sales from wireless charging modules are also beginning to be reflected."