[Click eStock] "KH Vatec to Sustain Growth with Automotive Components"

On June 18, IBK Investment & Securities analyzed that automotive components will drive performance improvement for KH Vatec.

Kim Unho, a researcher at IBK Investment & Securities, explained, "As of the end of the first quarter this year, the order amount for automotive components stands at 1.4 trillion KRW," and added, "We expect annual sales to reach around 100 billion KRW."

He continued, "Since additional platforms are expected to be added, both order volume and annual sales are likely to grow steadily," and further stated, "Automotive component sales are projected to reach 25 billion KRW this year, 66.7 billion KRW next year, and 98.9 billion KRW in 2027."

Kim also analyzed, "This year, improvements in foldable smartphone specifications have led to an increase in average selling price (ASP), which has reduced the risk of performance decline due to sluggish shipment volumes," and added, "We expect the company to enter the early stages of a stable growth trajectory." Additionally, he emphasized, "Automotive components, as a platform business, can achieve stable and consistent growth," and "They have sufficient value as a new growth engine."