[Asia Economy Reporter Jang Hyowon] NH Investment & Securities forecasted on the 6th that Sekonix is highly likely to supply components for Samsung Electronics' extended reality (XR) devices in the future.
Researcher Lee Gyuha of NH Investment & Securities explained in a report on the same day, "Sekonix is an optical components specialist company that mainly produced lenses for smartphone cameras in the past, but due to intensified competition, its main products now are automotive cameras and lamps."
Researcher Lee Gyuha stated, "While a recovery in its core business is expected, Sekonix, which has secured key XR component technology, is projected to benefit in the mid to long term. Regarding its core products, automotive cameras/lenses and lamps, margins significantly declined in the second half of last year due to the sharp rise in the KRW/USD exchange rate, but this year, with an increase in automobile shipments and exchange rate stabilization, a performance turnaround is expected from the first quarter."
He added, "Sekonix's future growth engine is expected to be XR optical components. Sekonix has secured projection module and eyepiece lens technologies, which are key XR components, and is currently supplying projection modules to the US AR glasses manufacturer Vuzix. For reference, the projection module is a component that projects a display onto transparent AR glasses, and the eyepiece lens is a special lens that goes near the eyes in VR."
He continued, "The reason for expecting benefits in the XR market is that the unit price of XR components is around 20 to 30 dollars, which is a significant increase compared to existing smartphone lenses (less than 1 dollar), and margins are also expected to be high. From the client perspective, Sekonix has a history of supplying lenses for Samsung Electronics' Gear VR devices, making it attractive that there is a high possibility of supplying Samsung Electronics' devices in the future."
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