[Special Stock] Newplex, Epic Games UEVR & Samsung Electronics AI Innovation "Ask and Double"

Newflex is showing strong performance. An analysis by securities firms suggests that the increase in sales proportion of Samsung Electronics' Galaxy S24 Ultra model and the global growth in extended reality (XR) device sales are driving this growth, which appears to be influencing the stock price.

As of 9:20 AM on the 22nd, Newflex was trading at 7,840 KRW, up 900 KRW (12.97%) compared to the previous trading day.

Meritz Securities analyzed that they are revising upward the expected shipment volume of XR models this year, reflecting the effect of the XR implementation program 'UEVR.' Researcher Yang Seung-su of Meritz Securities introduced, "UEVR is a program that implements Epic Games' Unreal Engine-based PC and console games into XR for free," and added, "It provides consumers with an immersive experience as if they have entered the world inside PC and console games, gaining popularity." He further noted, "Currently, it is understood that about 1,000 games that were not previously available in XR can be converted into XR games through UEVR."

He pointed out, "The XR market succeeded in short-term popularity after the launch of Quest 2 in October 2020 but failed to become mainstream," explaining, "Although Quest 2 significantly lowered the price entry barrier, the content shortage problem was not resolved." Additionally, he analyzed, "With the release of Vision Pro raising expectations for the XR market, UEVR is expected to resolve the content shortage in the XR market and accelerate mainstream adoption."

Researcher Yang stated, "Reflecting the UEVR effect, we are adjusting this year's shipment forecast for the affordable Oculus XR model expected to be released in the first half from 5 million units to 8 million units," adding, "UEVR is expected to increase gamers' entry into the XR market in the short term, and the affordable model will help alleviate the price burden for new entrants into the XR market."

He also said, "The mix improvement through expanded production for the S24 Ultra is positive," and predicted, "The expected increase in the sales proportion of the Ultra model within the S24 this year is also positive for Newflex's performance, as it has a high supply proportion of FPCB for the Ultra model."

Reflecting the mix improvement through expanded production for XR and the S24 Ultra, he revised upward the operating profit estimate for this year by 8.5% to 23 billion KRW. Researcher Yang analyzed, "Despite the recent stock price increase, the price-to-earnings ratio (PER) based on securities firms' estimates for this year is 7.8 times," and added, "Considering mid- to long-term growth potential, the valuation attractiveness remains high."

The Galaxy S24 Ultra is Samsung Electronics' first AI smartphone equipped with the company's self-developed artificial intelligence platform, 'Galaxy AI.' It is a product that focuses on bringing artificial intelligence into the palm of the hand, sometimes independently within the phone device and sometimes with the help of the internet world.