[Click eStock] "Optrontek, Expecting Visibility in Automotive Electronics Business Next Year... Target Price '↑'"

Daishin Securities forecasted on the 21st that Optrontec will show visible progress in its automotive electronics business next year. The investment rating was maintained as 'Buy,' and the target stock price was raised to 4,500 KRW.

Optrontec recorded sales of 58.9 billion KRW and an operating profit of 8.4 billion KRW in the third quarter. Compared to the same period last year, sales increased by 41.9%, and operating profit turned positive. Researcher Park Kang-ho stated, "Although sales growth was relatively high in the non-operating sector (investments), sales of IR filters, which faced intensified competition compared to last year, decreased. On the other hand, the increase in sales of folded zoom and automotive camera lens modules can be interpreted as a positive factor from a long-term growth perspective."

Researcher Park identified folded zoom and automotive sales as Optrontec's investment points for next year. He said, "Apple is expected to apply folded zoom as a camera differentiator in the iPhone 15 in 2023 and expand it to two models in 2024. Samsung Electronics and smartphone manufacturers in the Greater China region are also estimated to increase the adoption of folded cameras with enhanced optical zoom functions to strengthen sales of premium smartphones and camera differentiation."

He explained, "Optrontec is currently supplying MLA 8-inch glass wafers for smart headlamps for Genesis," adding, "It is estimated that various automotive electronics businesses will become visible, including the application to all Genesis models by Hyundai Motor Company in 2024, as well as automotive camera lenses and optical filters." He further added, "In 2024, 5-megapixel high-resolution optical filters will be supplied to domestic camera module companies, and ultimately, adoption in North American electric vehicles is expected to accelerate."

Additionally, the improving financial structure is a positive factor. He emphasized, "In the third quarter of this year, by selling unlisted stocks and others, borrowings were repaid, reducing the debt ratio to 490% in the third quarter," and added, "If the sale of the Pangyo office building is completed in the future, the financial structure is expected to improve further."