[Click eStock] "Wiseol, Laying the Foundation for Long-Term Growth... Expecting New Business Success"

Hi Investment & Securities analyzed on the 28th that Wysol's new business performance is becoming visible. The investment opinion 'Buy' and the target stock price of 10,000 KRW were maintained.

Ko Eui-young, a researcher at Hi Investment & Securities, stated, "It is virtually the only company in Korea with RF filter design and mass production capabilities," and added, "We believe it is at a stage of laying the foundation for long-term growth by expanding the lineup of high-frequency filters and Tx modules."

He explained, "The large-scale capital expenditures (Capex) over the past five years, subsequent depreciation burdens, and massive R&D expenses have held back performance," but also evaluated, "The depreciation burden has peaked out, internalization of key raw materials has been successfully achieved, and now the businesses that have been prepared are bearing fruit one by one."

Researcher Ko expected Wysol's new business results to appear. First, HS filters, which started supplying one model to domestic customers in 2022, are expected to correspond to four models in 2023 and ten models in 2024. Along with this, FBAR, which underwent five years of development, has been expanding shipments mainly to Chinese customers since December last year. Also, PAMiD plans to start mass production of one model by the end of this year and aims to secure additional model orders in 2025.

He emphasized, "The RF filters for TCU (Telematics Control Unit) are also progressing smoothly," adding, "They are being supplied to the world's number one telematics company, and with the transition to the 5G standard, the company's market penetration opportunities are opening."

Hi Investment & Securities forecast that Wysol's sales and operating profit in the second quarter of this year will reach 94.5 billion KRW and 3 billion KRW, respectively. He stressed, "Both domestic and Chinese customers' stockpiling demand is weaker than expected," but added, "Annual improvements are expected to be clear, with operating profits projected at 21.4 billion KRW this year and 34.6 billion KRW next year."