[Click eStock] "Telecom Equipment Stocks to Enter Major Uptrend Next Year"

Hana Securities forecasted on the 18th that telecommunications equipment-related stocks will enter a major upward trend next year.

Kim Hong-sik, a researcher at Hana Securities, stated, "The second Trump administration is likely to enter a phase preparing for 6G through the introduction of 5G Advanced (next-generation 5G) and will strengthen sanctions against Chinese telecommunications equipment companies. According to the Ministry of Industry and Information Technology, the number of 5G base stations in China is 4 million, which is 13 times that of South Korea, and 5G Advanced services have already started, centered around Shanghai. U.S. containment of China is expected."

Kim further predicted that telecommunications and platform companies will evolve from 5G Advanced to 6G to create new growth opportunities. He said, "Many investors question whether it is necessary to evolve to 6G through 5G Advanced. However, the introduction of next-generation networks is inevitable, even if not solely due to traffic increases. Network evolution is essential for fostering related industries such as IT and platforms. It is worth recalling that during the initial 5G introduction, most opinions were against the need for network evolution. But operators eventually adopted next-generation networks to survive, and the advanced networks subsequently stimulated the growth of related industries."

He particularly pointed out that considering the price-to-book ratio (PBR) levels, the likelihood of long-term investment success is high. Kim said, "Currently, the PBRs of major telecommunications equipment companies such as RFHIC, Sollid, and Innowireless are below 1. Although the 12-month target price has been lowered due to the decline in the average multiple of the telecommunications equipment sector, the downside risk is low, so we strongly recommend a buy-and-hold strategy."