[Click eStock] "Patron, Strong Camera Module Performance... Target Price Maintained"

On the 25th, KB Securities maintained its buy rating and target price of 11,000 KRW for comprehensive parts company Partron, stating, "The anticipated strong performance in camera modules and other areas is expected, and new businesses are projected to show external growth trends starting next year." The previous day's closing price was 7,730 KRW, indicating a 42% upside potential compared to the target price.

On the same day, KB Securities analyst Changmin Lee said, "Partron's Q2 performance this year is expected to show sales of 340.5 billion KRW, a 36% increase compared to the same period last year, and operating profit of 13.1 billion KRW, a 56% increase. The operating margin is estimated at 3.9%, which aligns with market expectations."

Following Q1, the expansion of sales in camera modules and sensors will continue to drive performance improvement. Analyst Lee explained, "Although shipments for the Galaxy S24 are expected to decrease compared to the previous quarter, sales for the Galaxy A15, A35, and A55 remain steady, and sales for the Galaxy Z Fold6 and Flip6 (including under-display cameras, fingerprint sensors, LEDs, etc.), expected to launch next month, will also begin." However, electronic cigarettes are expected to record performance similar to the same period last year.

Partron's performance this year is projected to reach sales of 1.4 trillion KRW and operating profit of 56.5 billion KRW (operating margin of 4.0%), representing increases of 20% and 36%, respectively, compared to last year. Analyst Lee stated, "The strong sales of the Galaxy S24 and the recovery of Galaxy A series sales mainly in Europe are driving the performance improvement of smartphone camera modules and sensor products."

He added, "Although new businesses have shown some stagnation this year, from next year, diversification of customers and new item shipments are expected for automotive parts. Electronic cigarettes are expected to expand their sales regions overseas, leading to external growth, so we maintain a positive investment opinion on Partron."