[Stock in Focus] KMW Surges Over 16% on Hopes for U.S. Market Expansion

The stock price of KMW, which is expected to benefit from expanded exports to the United States and favorable local policies, is showing strength.

As of 10:56 a.m. on the 30th, KMW was trading at 10,250 won, up 1,460 won (16.61%) from the previous trading day.

Hana Securities maintained its "Buy" rating and target price of 15,000 won for KMW on this day, stating, "As the company has passed the bottom in earnings and the price-to-book ratio (PBR) remains at a historical low, the long-term upward trend in the stock price is expected to continue."

Kim Hongsik, an analyst at Hana Securities, said, "Exports to the United States are maintaining a solid trend due to factors such as strengthened restrictions on Chinese components and the expansion of Open RAN. In addition, thanks to large-scale workforce restructuring in 2024, the company's headquarters operating expenses are showing a sharp decline this year."

Kim explained, "Assuming a large-scale spectrum auction is held in the United States at the request of President Donald Trump, KMW would be the biggest beneficiary. Based on the earnings trend and the current PBR level, the downside risk for the stock price is not significant, while the upside potential remains substantial."

He added, "Considering the network stabilization period in the United States, it seems highly likely that the spectrum auction will be completed within the second half of this year. If a 600MHz mid-band spectrum allocation takes place in the United States, KMW is expected to be the biggest beneficiary in the U.S. market from next year onward."