[Click eStock] "Furontieo Benefits from Autonomous Driving Market Growth... Expected to Record Highest Annual Performance"

Hanyang Securities analyzed on the 1st that Furontier is expected to achieve its highest annual performance. No investment opinion or target price was presented.

Furontier is a company specializing in assembly and inspection equipment related to camera modules, established in May 2009. It was listed on the KOSDAQ market last February through a special listing for technology growth companies. Hanyang Securities forecasted that Furontier will be a signal for performance growth this year and will become the biggest beneficiary of the autonomous driving market growth.

Lee Jun-seok, a researcher at Hanyang Securities, explained, "Furontier's equipment division consists of automotive equipment and mobile equipment, and recently, as the autonomous driving market expands, automotive ADAS/autonomous driving sensing camera equipment has been highlighted," adding, "Products made with Furontier's equipment are supplied to major global automakers." He continued, "As the level of autonomous driving increases, the number of sensing cameras installed increases, and as the technology advances, the demand for inspection equipment also rises."

In particular, the researcher analyzed that expectations for performance growth are high as the order backlog continues to increase. He emphasized, "As of the end of the second quarter this year, the total order backlog was 13.5 billion KRW, down from 19.6 billion KRW in the previous quarter, so third-quarter sales are expected to decrease compared to the previous quarter," but added, "However, sales of 30.8 billion KRW were already achieved in the first half, exceeding the 26.9 billion KRW sales of 2022."

He explained, "The key is securing additional orders in the second half; although new orders slowed in the third quarter, expectations for new orders in the fourth quarter have become very high," adding, "As autonomous driving technology advances and the required number of sensing cameras increases, the demand for the company's equipment is also rising."

Hanyang Securities projected that Furontier's sales and operating profit this year will reach 49 billion KRW and 9 billion KRW, respectively, marking increases of 82.1% and 451% compared to the previous year. This represents the highest annual performance. He emphasized, "As a pure player in domestic automotive sensing camera equipment, there is no doubt about its growth," and stated that Furontier is a company genuinely committed to growth, firmly equipped with external factors (Opportunity) and internal factors (Strength) for growth.