Newflex is showing strong performance. Mark Zuckerberg, CEO of Meta, stated on the 25th (local time) at the annual developer conference "Meta Connect 2024" held at the Monroe Park headquarters in California, USA, that "Orion is the next-generation computing device following smartphones," which appears to have influenced the stock price.
As of 9:41 AM on the 27th, Newflex is trading at 6,920 KRW, up 16.11% from the previous day.
Meritz Securities analyzed that Newflex's growth momentum has been strengthened due to the expansion of Meta Platforms' presence in the extended reality (XR) market, which is one of its clients. Newflex, a manufacturer of flexible printed circuit boards (FPCB), supplies automotive FPCBs to Meta.
Meta unveiled the Meta Quest 3S, a more affordable version of the mixed reality (MR) headset Meta Quest 3, the day before. By replacing the expensive pancake lenses with regular lenses, the price competitiveness was increased. The Quest 3S is priced between $299 and $399, making it $150 to $200 cheaper than its predecessor, the Quest 3.
Researcher Yang Seung-su explained, "The production volume of Meta Quest 3S, for which Newflex is the sole supplier (solvendor), is understood to maintain the previously planned level of around 10 million units, reflecting the possibility of a launch in the Chinese market next year."
He added, "Although the smartphone market is sluggish, Meta's position in the extended reality (XR) market is expanding, especially with the failure of competitor Apple’s Vision Pro."
Researcher Yang said, "It is positive that Newflex's growth momentum based on the XR market is rather strengthening along with the expansion of its client's position," and predicted that Newflex's XR-related sales will exceed 30 billion KRW for the first time this year.
Expectations for Orion, unveiled by Meta, are also high. It is the result of about five years since Meta announced the start of AR glasses development in 2019. It is evaluated that many of the problems of AR glasses have been largely overcome.
Researcher Yang stated, "After the release of Quest 3 and Vision Pro, market interest is growing in mixed reality (MR) rather than virtual reality (VR). Unlike VR, MR has high applicability in B2B markets such as healthcare, education, medical, and defense," and further explained, "Over the past year, MR device shipments were sluggish due to price resistance, but the Quest 3S, released at that time, was launched at a relatively low price."
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