[Click eStock] "BH Preparing for a Second Leap"

Ebest Investment & Securities analyzed on the 26th that BH's current stock price level only reflects negative factors, and investors should prepare for an upward turnaround.

Kim Kwangsoo, a researcher at Ebest Investment & Securities, stated in a report on the same day, "The operating profit for the fourth quarter of last year was 63% below market consensus," and explained, "This was due to one-time costs of 15 billion KRW, including additional expenses related to the construction of a new Fab for IT (tablet) OLED for North American customers, outsourcing processing fees, and year-end bonuses."

Researcher Kim Kwangsoo added, "This year's expected sales and operating profit are 1.7 trillion KRW and 106.1 billion KRW, respectively, representing increases of 8.4% and 24.1% compared to the previous year," and explained, "Regarding IT OLED performance for North American customers, the shipment timing is understood to be at the end of the second quarter this year, but various variables before mass production (shipment timing, market share, yield, etc.) were considered and thus not reflected in the estimates."

He said, "The adoption of IT OLED by North American customers will start with two tablet models this year and expand to all tablet and notebook models over the next five years," and forecasted, "BH EVS will significantly contribute to performance, with sales increasing from 324 billion KRW (operating profit margin in deficit) last year to 384 billion KRW (operating profit margin of 3~5%) this year."

He continued, "As BH EVS's business performance contribution becomes full-scale and mass production of FPCB for IT OLED panels begins, the growth momentum will enter an expansion phase, while seasonal impacts compared to the past will significantly decrease," and added, "The current stock price is undervalued, so we maintain a buy recommendation."