[Click eStock] "Wiseol, at the Beginning of a Turnaround"

Shinhan Investment Corp. analyzed on the 24th that Wisol is in the early stage of a turnaround. No investment opinion or target price was provided.

Choi Seunghwan, a researcher at Shinhan Investment Corp., said, "From 2020 to 2022, performance was sluggish due to intensified competition and COVID-19, but it turned profitable last year, and growth from new product launches is resuming this year." He added, "After reaching a historical bottom valuation due to prolonged poor performance, the stock price has risen 30% over the past six months, hitting a 52-week high, which we judge to be the beginning of a turnaround."

He explained, "The poor performance in 2021-2022 was largely due to cost increases caused by the global chip shortage, but in 2023, success in chip internalization laid the groundwork for a turnaround." He further stated, "From this year, sales of new products in the automotive SAW and RF module segments are expected to increase."

He elaborated, "Automotive SAW is expected to generate sales of 10 billion KRW this year due to the dual sourcing demand from leading companies, and it is a market with growth potential worth about 2 trillion KRW." He added, "In the RF module segment, the focus has shifted from quantitative to qualitative investment, leading to increased performance. For example, sales of PAMiD (filter + switch + power amplifier) are expected to be 5 billion KRW this year and 20 billion KRW next year." He continued, "The HS (High Performance SAW) filter, which responds to high frequencies, is expected to contribute 40 billion KRW in sales this year."