[Click eStock] "PioLink, Excessive Stock Price Decline"

NH Investment & Securities analyzed on the 12th that the stock price of Pionet Link fell excessively due to concerns about growth following the first-quarter earnings announcement.

Researcher Kang Kyung-geun of NH Investment & Securities explained, "Last year's one-time project base effect and increased selling and administrative expenses due to new product launches were factors contributing to poor performance," adding, "The network equipment industry focuses public institution and corporate infrastructure investments in the second half of the year, so second-half performance is more important than the first quarter."

He continued, "Exports of security switches to Japan will be in full swing in the second half of this year," and "Cloud security switches can handle everything from remote equipment installation to error analysis." He analyzed, "The response from overseas markets such as Japan and Southeast Asia is positive," and "Exports of security switches and related products this year are expected to reach 11 billion KRW, a 69.5% increase from last year."

Researcher Kang predicted, "The HCI product launched last year is a data center solution integrating servers, storage, and network equipment, with sales expected to increase from about 500 million KRW last year to 2 billion KRW this year and 5 billion KRW next year."

Sales for this year are estimated at 68.8 billion KRW, with operating profit at 11 billion KRW, representing increases of 16.6% and 23.2%, respectively, compared to last year.