[Click eStock] "Dongwoon Anatech, Expected Earnings Growth This Year"

[Asia Economy Reporter Jang Hyowon] Eugene Investment & Securities analyzed on the 15th that Dongwoon Anatech is expected to achieve performance growth this year, and its efforts to diversify business for mid- to long-term growth are positive.

Dongwoon Anatech's provisional consolidated sales and operating loss for the fourth quarter of last year were 15.8 billion KRW and 100 million KRW, respectively. Sales increased by 45.3% compared to the same period last year, and the operating loss was significantly reduced.

Researcher Park Jongseon of Eugene Investment & Securities stated in a report on the same day, "Both sales and operating profit showed levels similar to Eugene Investment & Securities' estimates, signaling performance improvement," and analyzed, "The reason for the strong performance is that sales of the profitable OIS (Optical Image Stabilizer) Driver IC increased significantly more than expected."

Researcher Park Jongseon forecasted Dongwoon Anatech's consolidated sales and operating profit for the first quarter of this year to be 17.2 billion KRW and 700 million KRW, respectively, representing a 30.7% increase and a turnaround to profit compared to the same period last year.

He explained, "This is because sales of AF (Auto Focus) Driver IC are expected to increase substantially with the launch of strategic phones by major domestic customers," adding, "This year marks the first year of full-scale supply to strategic and budget phones of major domestic customers, expansion of supply to Chinese smartphone manufacturers, and the start of full-scale supply of haptic products."

He continued, "By signing an exclusive technology license agreement for AF and OIS technology in the Greater China region (China, Taiwan, Hong Kong, Macau) with Hong Kong's Halo Microelectronics in December last year, not only will there be revenue of 21 million USD from technology transfer fees, but it will also be positive for full-scale market development."

Additionally, he noted, "The acquisition of a 4.0% stake (500,000 shares) in Elevation Microsystems, a US company that designs and sells automotive semiconductors, for 2 million USD as a strategic investment to enter the electric vehicle market in earnest is also noteworthy."