[Click eStock] "MCNEX Expands Autonomous Driving Lineup... Raises Target Price by 17%"

Meritz Securities on the 14th forecasted that MCNEX will maintain a solid performance trend this year and raised the target stock price by 17.2% from 29,000 KRW to 33,000 KRW. The previous day's closing price of MCNEX was 23,800 KRW.

Meritz Securities projected MCNEX's consolidated sales and operating profit for the first quarter of this year to be 333.6 billion KRW and 16.3 billion KRW, respectively. This is due to the continued effect of expanding market share of camera modules and actuators within its client companies.

Researcher Yang Seung-su of Meritz Securities stated, "Considering the trend of OIS actuator application models expanding from flagship to mid- to low-end models within client companies, it is expected to continuously have a positive impact on performance."

He explained, "In addition to mobile, the automotive parts division is also gradually expanding its role with the spread of autonomous driving. In the case of automotive camera modules, along with the advancement of autonomous driving technology, the number of product types such as front and rear cameras, around-view monitoring, and built-in cams, which are key items, is continuously increasing."

He added, "The newly promoted vehicle semiconductor module packaging business is concretizing collaboration with global IDMs in addition to two domestic fabless companies that have already received orders, and new sales are expected to occur within the second half of this year. We focus on the fact that the visibility of performance growth has increased and that the company possesses the technological capability to secure competitiveness in autonomous driving."

Researcher Yang emphasized, "The visibility of performance growth due to the expansion of market share in camera modules and actuators within client companies has increased, and the company holds camera module and vehicle semiconductor module packaging technologies that can secure competitiveness in the autonomous driving era. Considering the sector conditions where top-line growth is limited, we judge that the relative investment attractiveness is high."