Hi Investment & Securities downgraded the target price of Haesung DS from 71,000 KRW to 60,000 KRW on the 11th, citing that last year's operating profit fell short of expectations.
Haesung DS recorded sales of 145.1 billion KRW and an operating profit of 16.3 billion KRW in the fourth quarter of last year. The operating profit for the year was 102.5 billion KRW, below the expected 116 billion KRW.
Song Myung-seop, a researcher at Hi Investment & Securities, explained, "Orders decreased due to inventory adjustments by OSAT companies in the automotive and IT lead frame sectors," adding, "Sales of automotive IT lead frames were 62 billion KRW, slightly up from 61.1 billion KRW in the previous quarter."
He continued, "In the first quarter of this year, sales are expected to reach 154.5 billion KRW and operating profit 18.7 billion KRW, showing slight improvement from the previous quarter," forecasting that "sales will increase in the IT lead frame and DDR4 substrate segments."
He analyzed, "Even if there is a gradual recovery this year, it is expected to maintain growth potential in the long term" due to "the effects of new customer entries and new factory expansions."
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