[Click eStock] "Sollid, Historic Low... Buying Opportunity"

Hana Securities analyzed on the 31st that Sollid's price-to-book ratio (PBR) is at a historically low level, making it a good time to buy. They maintained their investment rating of 'Buy' and target price of 15,000 KRW.

Hana Securities forecasted that Sollid's sales and operating profit for the third quarter of this year will increase by 18% and 4% year-on-year to 85.4 billion KRW and 8.2 billion KRW, respectively. Kim Hong-sik, a researcher at Hana Securities, said, "We expect a third-quarter earnings surprise," explaining, "Although the U.S. market contracted, sales in Japan and domestically remained steady, while sales in the European market showed strong growth."

He added, "Sales to government offices continue to thrive, playing a driving role in improving performance," and "In the North American region, while telecom sales are sluggish, new government office sales are showing a positive trend." He also noted, "At the subsidiary level, the defense contractor Wintec's strong sales trend continued into the third quarter."

Researcher Kim predicted that Sollid's stock price could rise due to domestic and U.S. frequency auction events. He said, "The 2025 domestic and U.S. frequency auction events are likely to be triggers for Sollid's stock price increase," adding, "For the telecommunications equipment industry to improve overall, demand growth issues need to arise in both domestic and U.S. markets."

He emphasized, "Despite the strong events scheduled for 2025, the stock is recording the lowest price-to-earnings ratio (PER) and PBR levels in history," and stated, "We judge the current stock price to be at an extreme level due to poor supply and demand, and therefore strongly recommend active buying."