[Featured Stock] B.H. Rises 9.37% on 'Apple Effect' Expectations

The stock price of BH, a manufacturer of flexible printed circuit boards (FPCB) for smartphone OLED displays, is showing strong performance. As of 9:26 AM on the 29th, BH is trading at 25,100 KRW, up 2,150 KRW (9.37%) compared to the previous trading day.

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On the same day, Lee Gyu-ha, a researcher at NH Investment & Securities, raised BH's earnings estimates, stating, "Considering the strong sales of North American client Apple’s smartphones and margin improvements in the automotive division, we are increasing our earnings forecasts. Despite the recent stock price rise, the price-to-earnings ratio (PER) based on this year’s earnings is undervalued at 7 times." He also raised the target stock price from 24,000 KRW to 33,000 KRW.

He added, "In the mid to long term, growth will continue not only from Apple iPhone but also from automotive, IT OLED, and foldable devices," maintaining a buy rating.

He said, "The North American smartphone company plans to equip its new model, scheduled for release in the second half of the year, with on-device artificial intelligence (AI) features," and "We have raised the estimated shipment volume of the client’s smartphones by about 12.5% compared to previous estimates." Reflecting this, the operating profit forecast for this year was also raised by 30.7% to 117.5 billion KRW.

Furthermore, he noted, "Although it is the off-season, deliveries to the North American client are proceeding faster than before. This is because BH’s market share has increased due to yield issues at competitors," adding, "In the mid to long term, the expansion of OLED IT device applications and the launch of foldable devices by the North American client are expected to act as factors for earnings growth and valuation premium (stock price level relative to corporate value)."