[Click eStock] "MCNEX, Expected to Exceed This Year's Performance Forecast... Target Price Up"

Target Price Raised by 3% Compared to Previous Level

Daishin Securities raised the target price for MCNEX to 34,000 KRW on the 10th, expecting this year's performance to exceed market expectations. The investment rating was maintained at 'Buy.'

Park Kang-ho, a researcher at Daishin Securities, explained, "The reason for raising the target price is that we increased this year's earnings per share (EPS) by 17.7%. First-quarter sales and operating profit are estimated at 338.4 billion KRW and 16.2 billion KRW, up 17.6% and 6.7% year-on-year, respectively, which are upwardly revised by 10.4% and 22% compared to previous estimates. High growth is expected for the second consecutive quarter." He added, "The strong first-quarter performance is due to increased market share in camera modules and actuators within Samsung Electronics smartphones such as the Galaxy S25, along with a mix effect (expansion of high-priced products), resulting in simultaneous increases in quantity and price. Sales of camera modules and actuators for mobile phones are estimated at 268.4 billion KRW, up 19.1% year-on-year and 21.9% quarter-on-quarter."

This year's performance is expected to exceed market expectations, benefiting from increased sales and market share of the Galaxy S25. Researcher Park said, "MCNEX experienced performance setbacks in 2022-2023 due to yield issues at the Vietnam factory and declining market share, but last year, it secured technological and production reliability with customers, leading to expanded supply of cameras and actuators for the Galaxy S24 and the high-end A series. As a result, sales and operating profit in 2024 increased by 13.4% and 143.5%, respectively. This year's performance is expected to surpass consensus (average securities firm forecasts)."

Daishin Securities estimates MCNEX's sales this year at 1.33 trillion KRW, up 26.1% year-on-year, and operating profit at 60.2 billion KRW, up 35.7%. Researcher Park predicted, "Among mid-sized camera module companies within Samsung Electronics, MCNEX is expected to achieve the highest growth. In particular, actuator sales are estimated to increase by 50.9% to 160.3 billion KRW, as competitors focus on Apple, leading to expanded market share within Samsung Electronics. This year, sales and operating profit are expected to reclaim the No. 1 position within Samsung Electronics."

Stable growth in automotive components is also anticipated. Researcher Park analyzed, "Sales of automotive components are expected to increase steadily from 176.3 billion KRW in 2022 to 283.9 billion KRW in 2025 and 301.6 billion KRW in 2026. The increase in sales and profitability of automotive components is a differentiating factor compared to other camera module companies, providing a foundation for performance improvement."