[Click eStock] "Haavision System, Expected to Achieve Record Performance This Year"

Hi Investment & Securities Report

Hi Investment & Securities evaluated on the 29th that Hi-Vision System is expected to achieve its highest performance this year, anticipating a rise in its stock price.

Hi-Vision System is a company specializing in inspection process equipment based on video and signal processing, and motion control technologies. Last year, its sales composition was 76% from automated inspection equipment for camera modules, 21% from video evaluation devices, and 3% from 3D printers, with 80-90% of its customers located in North America. The domestic market accounts for 10-20%. Researcher Ko Eui-young of Hi Investment & Securities explained, “Transactions with major North American customers began in 2010 and have evolved alongside the flagship smartphone cameras' development and growth.”

The key opportunity to watch this year is the camera upgrade of North American customers. The new model from a North American customer, scheduled for release in the second half of this year, is expected to feature many changes in camera specifications. These include the expanded penetration of 48 MP cameras, upgrades to front 3D modules, and the installation of folded zoom modules on the top-tier models. Researcher Ko said, “Capital expenditure for LG Innotek’s optical solutions business, which has a high correlation with the company’s sales, is expected to increase by 53% year-on-year to 1.65 trillion KRW. LG Innotek supplies 70% of the rear cameras for IT sets of North American customers and serves as an intermediary for the company.”

Investment in assembly lines by EMS companies in the Indian market also presents a mid- to long-term opportunity, as new demand for process equipment, including A/A, may arise. The expansion of applications based on core technologies such as video processing and motion control is also positive. Researcher Ko stated, “This year, a Turkey project for battery packaging lines is planned, and depending on the supply performance of new secondary battery equipment, additional upside may emerge. Furthermore, as domestic competitors in camera module inspection equipment face management difficulties, a beneficial side effect is expected.”

Meanwhile, sales this year are projected to reach 291 billion KRW, with operating profit at 45 billion KRW, representing growth of 47% and 79% respectively compared to the previous year. The operating profit margin is expected to be 15.5%. This will be the best performance ever, surpassing that of 2021.