[Featured Stock] Innowireless, Small Cell Exports Surge 'Major Uptrend Imminent'... Target Price 70,000

Innowireless is showing strong performance. Securities firms' analysis that operating profit will surge next year seems to be influencing the stock price.

As of 10:26 AM on the 7th, Innowireless is trading at 26,300 KRW, up 7.13% from the previous day.

Hana Securities analyzed that Innowireless is highly likely to enter a major upward trend next year. They maintained a 'Buy' investment rating and a target price of 70,000 KRW.

Kim Hong-sik, a researcher at Hana Securities, said, "At this point, it is judged necessary to secure additional Innowireless shares," adding, "If expectations for the commercialization of 5G Advanced (next-generation 5G) increase, it is natural for Innowireless, the only listed small cell company in Korea, to surge."

He added, "While Huawei has announced the launch of next-generation 5G equipment next year, the Ministry of Science and ICT recently hinted at the possibility of supplying 300MHz in the 3.7~4.0GHz band in Korea through an auction." Furthermore, he predicted, "Assuming the commercialization of next-generation 5G occurs in 2025, the possibility of entering a major upward trend for 5G equipment stocks, including Innowireless, in early 2024 increases."

Researcher Kim emphasized, "Innowireless announced through an online COP day that small cell exports have surged since the fourth quarter of 2023," explaining, "Exports of small cells to Japan, which had practically stopped since the beginning of the year, are now concentrated in the fourth quarter."

He expressed expectations that "Innowireless's annual sales next year will increase by more than 10% compared to the previous year, and operating profit will also show double-digit growth."

Researcher Kim also explained, "Positive outlooks are emerging 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 initially expected," analyzing that "the current stock price is considered excessively undervalued."