[Click eStock] "Jaeyoung Solutec Enters Full-Scale Earnings Growth Phase"

KB Securities analyzed on the 16th that Jaeyeong Solutec has entered a full-scale phase of earnings growth. No investment opinion or target price was provided.

Kim Hyun-gyeom, a researcher at KB Securities, stated, "Despite the second quarter being an off-season, Jaeyeong Solutec posted solid results," and explained, "The expansion of supply of optical image stabilization (OIS) for the A-series of major clients and encoders for flagship models drove the performance."

He added, "From the existing low-profit lineup centered on voice coil motors (VCM) and encoders, the expansion of sales of high-spec OIS with good profitability led to achieving a high single-digit operating profit margin (OPM)."

Researcher Kim focused on the benefits of expanding OIS for the mid-to-low-end A-series, citing high-spec cameras, thickness reduction, and increased battery capacity as the parts of smartphone specification improvements most perceptible to consumers.

He said, "Jaeyeong Solutec has completed the development of next-generation (FS)-OIS in line with the current trend of mid-to-low-end OIS expansion," and evaluated, "FS-OIS minimizes camera thickness and enables cost reduction by decreasing the number of components, making it highly likely to be adopted in many models of major clients in the future."

According to the report, Researcher Kim also views the possibility of Jaeyeong Solutec's OIS entering flagship models in earnest as high. He said, "The expansion of the Vietnam factory has already been completed, securing a production capacity of 3.6 million OIS units per month, allowing immediate response to clients," and added, "If adopted by clients, sales expansion due to increased operating rates and double-digit OPM are expected."