[Click eStock] "OE Solution, The First Year of Performance and Stock Price Growth... Target Price Set at 30,000 Won"

On January 14, Hana Securities analyzed that this year will mark the beginning of simultaneous growth in both performance and stock price for OE Solution. The firm initiated coverage with a "Buy" investment opinion and set a new target price of 30,000 won.

Kim Hongshik, a researcher at Hana Securities, stated, "OE Solution has succeeded in localizing the laser diode chip, a core component of optical transceivers," adding, "Laser diode chips are expensive due to the difficulty of development and mass production, and their purchase alone accounts for 40% of the total raw material procurement costs, thus having a decisive impact on the profit margin."

He continued, "OE Solution has demonstrated its technological capabilities by using its own chips in FTTH products for Japanese SI customers and in products supplied to Samsung Electronics," emphasizing, "If frequency auctions become active in the future, the use of in-house chips is expected to improve profit margins and secure cost competitiveness."

He also expressed expectations that, as frequency auctions resume both domestically and internationally starting this year, OE Solution's wireless and transmission network sales will directly benefit. He said, "Thanks to frequency auctions scheduled from 2026, OE Solution will record significant sales growth," explaining, "OE Solution supplies transceivers for wireless, transmission networks, and cables to Korea, the US, and Japan, and the wireless and transmission network sectors in Korea and the US will directly benefit from the auctions."

In addition, he analyzed, "With the US expanding its policy to keep China in check to the optical transceiver sector, OE Solution is likely to benefit indirectly," and "Having succeeded in localizing the laser diode chip, a core component of optical transceivers, the company has secured price competitiveness and can gain supply advantages in the event of future component shortages."

He concluded, "Despite major confirmed events approaching and favorable internal and external conditions for OE Solution, its current PBR is undervalued at 2.x times," and predicted, "Considering that frequency auctions will begin in the US and Korea this year, the stock price could rise to a PBR of around 5 times within the year."