[Click eStock] "Anam Electronics, Expected Growth Benefit from AI Speaker Equipped with ChatGPT"

[Asia Economy Reporter Hyungsoo Park] ResearchAlum stated on the 20th that AI-based Bluetooth speakers will become the central hub of smart homes in households in the future, and expected Anam Electronics to benefit from this trend.

Researcher Seonghwan Choi of ResearchAlum explained, "The distribution of smart speakers utilizing Amazon's Alexa and Google's Google Assistant has progressed," adding, "With the commercialization of ChatGPT, services of a completely different dimension will be provided, and the market will grow significantly."

He continued, "Anam Electronics is a supplier of Amazon's voice recognition AI speakers," and "We expect benefits due to intensified competition in the upstream market."

Researcher Choi forecasted, "Anam Electronics is expected to be re-evaluated starting this year," analyzing, "They have secured production capacity worth $600 million through large-scale expansion in Vietnam."

He emphasized, "Large-scale expansion is carried out when there is a definite demand source and long-term supply is expected," calling it "a factor that can lead to high growth."

Last year, Anam Electronics recorded sales of $372 million and operating profit of $16 million, representing increases of 18.3% and 17.9% respectively compared to the previous year. ResearchAlum estimated that Anam Electronics will achieve sales of $394 million and operating profit of $20 million this year, expecting increases of 6.0% and 26.4% respectively compared to last year. The expected earnings per share for this year is 205 KRW, and applying a price-earnings ratio (PER) of 18 times, the appropriate stock price was suggested to be 3,690 KRW.