[Click eStock] "Puruntieo, a Period of Strengthening Fundamentals"

Meritz Securities analyzed on the 26th that this year will be a year of strengthening fundamentals for Purontier.

Yang Seung-su, a researcher at Meritz Securities, said, "We are revising downward this year's earnings estimates reflecting the delay in the establishment of new North American factories by client companies," and explained, "The end customers are reducing their production plans this year due to weak demand for electric vehicles (EV), intensified competition, and the possibility of a change in administration."

He added, "The specific decision on new factory expansion is expected to be made after the U.S. presidential election on November 5," and "The large-scale equipment supply for the new factory, which had been anticipated since last year, will occur next year, not this year."

He analyzed, "Although there will be no large-scale expansion, this year is expected to be a year of strengthening fundamentals," and "Currently, the end customers are receiving camera modules from six module companies." Additionally, he emphasized, "Five module companies are identified as Purontier's clients," and "Since early this year, discussions have been ongoing regarding supply to the remaining one North American module company."

Researcher Yang explained, "Although the concept of autonomous driving has emerged a long time ago, technologically it is still in its early stages," and "In this phase of technological inflection, earnings volatility is inevitable." He stated, "In the massive trend toward autonomous driving, Purontier's competitiveness, which has established technological entry barriers, will be highlighted."