NH Investment & Securities raised the target price for Sekyung Hi-Tech from 23,000 KRW to 25,000 KRW on the 31st. This adjustment reflects the expansion of the foldable smartphone market and cost reduction effects.
Global smartphone shipments are expected to increase to approximately 18 million units this year, a 40% rise compared to last year. Sekyung Hi-Tech is benefiting from this growth as it supplies protective films for foldable smartphones.
Accordingly, Sekyung Hi-Tech's operating profit forecast for this year is estimated at 27.2 billion KRW, up about 29.1% from the previous estimate. This represents nearly a 240% surge compared to last year.
Lee Gyu-ha, a researcher at NH Investment & Securities, stated, "The new foldable smartphones from domestic clients scheduled for release in the second half will all be equipped with dumbbell hinges (waterdrop hinges), known to eliminate screen wrinkles, and the front display size of the Flip model will expand from 1.9 inches to 3.7 inches, significantly improving design and marketability. Thanks to this, we believe there is a high possibility of strong sales performance, unlike the previous model." He added, "In the mid to long term, foldable form factors are likely to be applied not only to smartphones but also to IT devices such as tablets, and the potential adoption by North American companies is also positive for the company."
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