[Click eStock] "Mid- to Long-Term Growth Trend... Maintaining Target Price for Rino Industry"

LS Securities maintained a buy rating and a target price of 300,000 KRW for Rino Industrial on the 4th, stating that "the medium- to long-term earnings growth trend will accompany the diversification of IT devices."

On the same day, Hong-sik Jeong, a researcher at LS Securities, explained, "As the types and functions of semiconductors used in IT devices are diversifying due to the expansion of AI, autonomous driving, and communication-enabled products, the required functions and characteristics for related inspections are also diversifying."

Researcher Jeong said, "Rino Industrial's operating profit margin (OPM) has shown a gradual increase from a past average of 35.6% to 44.8% last year and 44.9% in the first quarter of this year," adding, "Generally, the first and fourth quarters are off-seasons with relatively lower OPM, but the fourth quarter of last year and the first quarter of this year maintained high profitability."

Regarding the reasons for improved profitability, he cited ▲ expansion of customer base ▲ expansion of new IT devices. Researcher Jeong noted, "In the past, the main customers were companies producing semiconductor chips and those in the mobile industry, but as the IT environment rapidly changes, there has been an internal movement to expand chip development," adding, "New customers demand not only reliability testing of chips but also simulation and stress testing."

He also stated, "In the global non-memory semiconductor R&D process, the development of new IT products has expanded rather than upgrading existing products. This has increased the concentration of customers due to world-class technological competitiveness," and added, "The company plays a role in setting prices based on high technological capabilities. It is highly likely that a high level of OPM will be maintained in the future."