[Market Highlight] Innowireless Rises 5.75% on Expectations of Strong Q4 Results

Hana Securities:
"A Good Time to Initiate a Buy"
Record-Breaking Fourth Quarter Expected for Innowireless
Strong Growth Projected in Defense and Small Cell Sales

Shares of Innowireless are showing strong performance as the company is expected to achieve record-breaking quarterly results in the fourth quarter of this year.

As of 9:36 a.m. on September 4, Innowireless was trading at 19,480 won, up 1,060 won (5.75%) from the previous trading day.

On this day, Hana Securities maintained a "Buy" rating and a target price of 40,000 won for Innowireless, stating, "Based on this year’s earnings, the price-to-book ratio (PBR) remains below 1, indicating the stock is still undervalued."

Kim Hongsik, a researcher at Hana Securities, said, "While weak earnings are expected to continue through the third quarter, record-high sales are anticipated in the fourth quarter. Consolidated sales in the fourth quarter are projected to reach 75.4 billion won (a 29% increase year-on-year and a 65% increase quarter-on-quarter), with consolidated operating profit expected to be 8.9 billion won (a 39% increase year-on-year and a 9,000% increase quarter-on-quarter)."

Kim added, "Sales of small cells to telecommunications companies in Japan and Korea will be concentrated in the fourth quarter," and noted, "Defense sales, which were highly anticipated, are also expected to be concentrated in the fourth quarter, which is a seasonal peak period." He further stated, "Next year, meaningful profit growth is expected amid a profitable trend in the first half, and for the full year of 2026, consolidated sales are projected to grow by 30%, with consolidated operating profit increasing more than tenfold."

He also analyzed, "Unlike this year, new frequency allocations and reallocations are expected to take place in major countries such as the United States and Korea, and new devices are likely to be launched. Defense sales, which are the group’s main focus, are also expected to see significant growth, led by Innowireless."