Daishin Securities raised the target price for BH from the previous 27,000 KRW to 32,000 KRW on the 31st, citing strong earnings expectations not only for the second quarter but also for the second half of the year. The investment rating was maintained as 'Buy.'
Researcher Park Kang-ho said, "Second-quarter sales are expected to reach 411.1 billion KRW, up 34.7% year-on-year, and operating profit is expected to increase by 95.6% to 19 billion KRW, surpassing previous estimates and consensus, resulting in strong performance."
He added, "We anticipate the highest sales for the second quarter due to strong sales of Apple's 'iPhone 15' and proactive production of the 'iPhone 16' as of the second quarter," and explained, "A strategy focusing on better-than-expected strong performance in the second half is also necessary."
For the second half of this year, sales are expected to be 1.1 trillion KRW, and operating profit is forecasted at 93.4 billion KRW, representing increases of 15.5% and 41.1% respectively compared to the previous year. For the full year 2024, sales are expected to reach 1.83 trillion KRW and operating profit 120.8 billion KRW, up 15.2% and 42.4% year-on-year, respectively.
Researcher Park said, "Initial production of the iPhone 16 is similar to that of the iPhone 15 (2023), but sales are expected to increase, and replacement demand is also anticipated due to artificial intelligence (AI) services," adding, "Considering stable yield rates, increased Pro model market share, and exchange rate rises, profitability is also expected to improve."
He continued, "Additionally, new sales of rigid PCB (HDI) amounting to 60.5 billion KRW will be reflected in 2024," and said, "With expanded supply to Apple and Samsung Electronics tablet PCs in 2025, rigid PCB sales are expected to increase by 204% year-on-year to 183.8 billion KRW."
He further stated, "The new contribution to strong earnings in the second quarter and second half of this year is the full reflection of profits from the automotive wireless charger (BHEVS) business," adding, "Additional costs related to the acquisition of the automotive wireless charger business were reflected until 2023, but since the first quarter of 2024, normal operating profit margins have been realized."
He also forecasted, "Operating profit from the automotive wireless charger (BH EVS) business in 2024 is expected to improve significantly to 25.3 billion KRW, up 6.6 billion KRW from the previous year," and predicted, "BH EVS will play a central role in offsetting profit slowdowns during Apple's off-season (first half of the year)."
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