[Click eStock] "Purenteo, Many Tesla Events... Expecting Rebound Next Year"

Meritz Securities analyzed on the 20th that Furontier is expected to see performance growth next year as demand improves due to Tesla's Robotaxi and Model Y facelift. They gave a 'Buy' investment rating and a target price of 31,000 KRW.

Researcher Yang Seung-su of Meritz Securities said, "The driving force behind last year's record performance was the increase in the number of cameras installed per unit and pixel count due to the transition from HW3 to HW4," adding, "The pixel increase is directly linked to equipment function upgrades and greatly contributed to the expansion of order backlog in the second half of 2022."

He stated, "Given the characteristics of cameras related to autonomous driving performance, additional increases in installation quantity and pixel count are expected in AI5," and "The company, which currently holds an 80% market share in camera module equipment for North American end customers, is expected to directly benefit."

Researcher Yang explained, "The fundamental reason for the company's decrease in new orders this year is the reduction in investment due to weak demand from customers," and "If demand recovers, aggressive investment is likely to resume once again."

He added, "In this regard, the customer's Robotaxi unveiling on October 10 this year and the launch of a low-priced model next year are considered significant events that could trigger a demand rebound," emphasizing, "In Furontier's case, the second-quarter performance confirmed that when accompanied by sales, the profit level is very high, and if customer demand rebounds, the visibility of performance recovery in 2025 is expected to be high."

He continued, "At a time when a new inflection point in autonomous driving called the 'Robotaxi unveiling' is imminent, we judge the company's investment attractiveness to be high."