[Click eStock] "Jaeyoung Solutec, Early Stage of Sales Expansion... Expected Capability Enhancement through Selection and Concentration"

On the 21st, KB Securities analyzed Jaeyeong Solutec as being in the early stage of sales expansion.

Kim Hyun-gyeom, a researcher at KB Securities, stated in a report on the same day, “From the first quarter of next year, encoders will be supplied to Samsung Electronics' flagship models, and new OIS (optical image stabilization) will be supplied to mid-to-low-end lines,” adding, “Since deliveries usually start 4 to 6 weeks in advance, deliveries are expected to begin as early as December.”

He continued, “Considering the sales trend of high in the first half and low in the second half, the current point is judged to be the early stage of sales expansion, making it noteworthy.”

KB Securities expects double-digit operating profit margins next year due to product mix improvements. OIS is the most profitable lineup among actuators, and it is forecasted that the OIS portion of sales will reach 55% to 60% next year. The base effect of discontinuing the mold division and the expansion of the OIS portion are sufficient to expect double-digit operating profit margins.

The company decided to discontinue the loss-making mold division through a board resolution in August. As a follow-up measure to this decision, the mold business site was also sold.

Researcher Kim emphasized, “Improvement of the financial structure due to debt repayment and strengthening of the nano-optics division's capabilities through selection and concentration are expected.”