[Click eStock] "Patron Achieves Record High Sales with Increased Non-Mobile Segment Share"

IM Securities analyzed on the 27th that Partron is expected to achieve record-high sales due to the increased proportion of non-mobile sectors. The investment opinion 'Buy' and the target price of 10,500 KRW were maintained.

Go Eui-young, a researcher at IM Securities, said, "Looking back at the first half of the year, camera module sales reached 514.1 billion KRW, showing an impressive growth of 83% compared to the same period last year," adding, "With a low base burden from the previous year, the expansion of camera module market share within client companies and the growth in automotive camera sales stood out."

Growth in sectors other than mobile was particularly notable. He explained, "Automotive camera sales in the first half of this year amounted to 92.6 billion KRW, a 150% increase compared to the same period last year," and "The proportion of total company sales also nearly doubled from 7% to 13% during the same period." He added, "This is the result of the combined effect of increased market share within client companies and the advancement of ADAS."

Regarding automotive LED, he emphasized, "Although the growth trajectory has been more moderate than expected due to the slowdown in electric vehicle sales by end users, this does not imply negative growth," and "Related sales are expected to grow 11% year-on-year to 40.2 billion KRW for the full year."

He stated, "Automotive parts sales are projected to be 257.3 billion KRW this year and 331.7 billion KRW next year, representing year-on-year growth of 51% and 29%, respectively," adding, "Since the company actively began expanding its automotive parts business in 2020, it is demonstrating an average annual growth rate of 52% over five years through 2025."

IM Securities also expects improved performance in the third quarter of this year. They forecast Partron’s third-quarter sales to be 409.1 billion KRW and operating profit to be 18.7 billion KRW, representing increases of 33% and 38% year-on-year, respectively. He said, "For camera modules, mobile-related sales are expected to be flat compared to the previous quarter due to FE models and some A-series mass production, while automotive cameras are expected to see further improvement following the second quarter," and added, "Regarding sensors, fingerprint recognition is unlikely to rebound due to intensified competition and sluggish upstream demand, but sales of wearable SiP and Force Touch, which began mass production from the second quarter, are expected to be fully reflected in the third quarter, driving external growth."

He emphasized, "Demand for electronic cigarettes has been better than planned since the beginning of the year, and especially with overseas sales starting from the third quarter, another level-up compared to the second quarter is expected."