[Click eStock] "BH Expected to Break Record High Performance This Year and Next Year"

Daishin Securities on the 7th issued a buy rating and set a target price of 41,000 KRW for BH, expecting the highest sales and operating profit among domestic IT component companies amid record-breaking performance this year and next year.

Park Kang-ho, a researcher at Daishin Securities, also stated, "The company is diversifying into the automotive sector with expanded sales of vehicle smartphone wireless chargers," and evaluated that "with the new adoption of organic light-emitting diode (OLED) displays for Apple's iPad in 2024 and additional expected sales, BH has entered its third growth phase and continues high growth."

BH is regarded as having entered its third growth phase starting this year and continuing into 2024, with sales diversification expected in tablet PCs and the automotive sector next year, leading to differentiated growth. BH's sales this year are estimated to reach 1.73 trillion KRW, setting a new record, and are projected to increase by 17.8% to 2.04 trillion KRW in 2024. The new supply of flexible printed circuit boards (RF PCB) for Apple's iPad in 2024 and the reflection of vehicle wireless charger sales this year are expected to differentiate BH's growth compared to other PCB companies. Operating profit is also analyzed to reach record highs of 131.5 billion KRW this year and 167.2 billion KRW next year. This is considered the best performance among semiconductor PCB and domestic IT component companies.

Researcher Park said, "Apple is expected to newly adopt OLED panels for the iPad next year," adding, "With Samsung Display's 8.6-generation OLED investment, the adoption of OLED panels is expected to expand from mobile phones to tablet PCs and laptops."

He continued, "BH, a key supplier to Samsung Display, has secured additional growth momentum and benefits from the transition of mobile device displays to OLED panels," and added, "The proportion of sales from automotive sectors such as vehicle smartphone wireless chargers and battery cables expanded from 6% in 2022 to 20% this year, reducing dependence on mobile phones and diversifying sales, thereby establishing a stable growth foundation for 2024."