[Click eStock] "Reno Industrial to Deliver Differentiated Results Despite Market Slump"

Sales of High-End Smartphones Rise Despite Overall Market Decline
Performance Growth Driven by Increased Market Share

Reno Industrial is showing rapid performance growth despite the sluggish smartphone market. Analysts expect the company to deliver differentiated results in the second quarter as well, as it continues to increase its market share based on technological competitiveness.

On June 23, Korea Investment & Securities raised its target price for Reno Industrial by 9.8% to 56,000 won and maintained its "Buy" rating. The previous trading day's closing price was 51,600 won.

The sharp increase in test socket exports was cited as a key positive factor. Test socket exports from Busan surged to 13.6 billion won in April (up 17.6% year-on-year), followed by 19.3 billion won in May (up 123.6% year-on-year), showing a steep upward trend. While smartphone shipments in the first quarter of this year increased by only 0.5% compared to the same period last year, Reno Industrial's market share in test sockets rose from 14.5% to 19.7% during the same period.

China's "Yi Gu Huan Xin" policy also contributed. Rather than boosting overall smartphone sales, the policy led to higher demand for high-end smartphones, which in turn raised the average selling price. In fact, smartphone production in China increased by 6.4% year-on-year in the first quarter, but is expected to decline in the second quarter. In contrast, retail sales of telecommunications devices continue to rise, driven by growing demand for smartphones equipped with high-performance APs in China.

Park Sanghyun, a researcher at Korea Investment & Securities, explained, "Reno Industrial's core competitiveness in test sockets lies in inspection accuracy, so as demand for high-performance APs increases, Reno Industrial's market share also grows. Despite the overall sluggishness in the smartphone industry, the company is expected to deliver differentiated and strong results."