[Click eStock] "Optrontek, Proving Through Performance"

Kiwoom Securities analyzed on the 21st that Optrontec is proving itself through its performance.

Oh Hyunjin, a researcher at Kiwoom Securities, stated in a report on the same day, “Optrontec recorded sales of 76.8 billion KRW and an operating profit of 5.5 billion KRW in the first quarter, representing increases of 63% and 2212% respectively compared to the same period last year, surpassing market expectations. The filter segment grew 39% year-on-year due to strong sales of the Galaxy S series, and the optical zoom segment was driven by increased demand for folded zoom-related components and increased IRIS deliveries to smartphone manufacturers in the Greater China region,” he analyzed.

Researcher Oh Hyunjin explained, “The operating rate of the optical zoom segment increased to about 98.7% in the first quarter. The sales growth centered on profitable items is noteworthy, and the trend of enhancing camera performance, such as the adoption of folded zoom due to Greater China companies strengthening their high-end smartphone strategies, continues, rapidly increasing Optrontec’s proportion of sales to Greater China companies.”

He added, “Optrontec signed a contract in March to sell its Pangyo office building for 57 billion KRW. The final payment is expected to be completed by the end of the year, and financial structure improvement is anticipated to reduce interest expense burdens upon future cash inflows.”

He also said, “Growth in automotive optical components, such as expanded supply of vehicle camera lenses to global electric vehicle companies, will accelerate in the second half of the year,” adding, “In addition, attention should be paid to the growth of various automotive product lineups, including automotive IR filters and MLA (Micro Lens Array) glass wafers for headlamps.”