[Click eStock] "MCNEX, Expansion of High-Value Automotive Sales"

Daishin Securities analyzed on the 18th that MCNEX's high-value-added automotive sales are expanding. The investment opinion 'Buy' and the target price of 41,000 KRW were maintained.

Daishin Securities forecasted that MCNEX's sales and operating profit for the second quarter of this year will reach 226.7 billion KRW and 8 billion KRW, respectively. Sales are expected to increase by 18% year-on-year, and operating profit is expected to turn positive.

Park Kang-ho, a researcher at Daishin Securities, explained, "While smartphone camera module sales have slowed, we expect high growth compared to the previous year due to the expansion of sales in China-oriented actuators, electronic components (such as camera modules), and automotive components."

The expected sales for this year are projected to reach 1 trillion KRW, with an operating profit of 44.9 billion KRW, representing increases of 7.8% and 146.5% year-on-year, respectively. He stated, "This is due to the supply of folded zoom cameras for Galaxy S24 and increased sales of actuators for China," adding, "Automotive component sales are expected to reach 267.6 billion KRW, a 5.8% increase year-on-year, with profitability improvement exceeding sales growth."

He continued, "The operating profit ratio of automotive components is estimated to expand to 25% due to an increase in high-priced orders and sales expansion, which is a 9.2 percentage point increase compared to the previous year."