[Click eStock] Innowireless, Strong Uptrend Possible Next Year ↑... "Target Price Maintained at 70,000 Won"

Hana Securities analyzed on the 7th that Innowireless has a high possibility of a major uptrend next year. The investment opinion 'Buy' and the target price of 70,000 KRW were maintained.

Kim Hong-sik, a researcher at Hana Securities, said, "Since there is a possibility that Innowireless's stock price will enter a major uptrend phase early next year, it is judged that it is necessary to secure additional Innowireless shares at this point," adding, "If expectations for the commercialization of 5G Advanced (next-generation 5G) increase, a sharp rise in Innowireless, the only listed small cell company in Korea, is natural."

He forecasted, "With Huawei announcing the launch of next-generation 5G equipment next year, and the Ministry of Science and ICT recently indicating the possibility of supplying 300MHz in the 3.7~4.0GHz band in Korea through an auction," and added, "Assuming the commercialization of next-generation 5G occurs in 2025, the possibility of 5G equipment stocks, including Innowireless, entering a major uptrend phase early in 2024 increases."

He also expected the earnings improvement trend to continue. He emphasized, "A few days ago, Innowireless announced through an online COP day that exports of Innowireless small cells have surged since the fourth quarter of 2023," and explained, "Exports of small cells to Japan, which had practically stopped since the beginning of the year, are showing a pattern of concentration in the fourth quarter."

He explained, "Accordingly, Innowireless's annual sales in 2024 are expected to increase by more than 10% compared to the previous year, and operating profit is also expected to show double-digit growth," adding, "Positive prospects are emerging both inside and outside the company regarding the acquisition of Myungseong Lifax, a vehicle semiconductor processing and distribution company." He continued, "Next year, Innowireless's consolidated operating profit is likely to exceed 30 billion KRW as originally expected, and the current stock price is judged to be excessively undervalued."