[Click eStock] "UIEL Emerges as a Beneficiary of Commercial Act Revision with High Dividends and Share Buyback"

On January 21, independent research firm ValueFinder analyzed UIEL, stating that the company is expected to benefit from a valuation re-rating and the revision of the Commercial Act, citing a price-to-earnings ratio (PER) of 5.6 times, net cash holdings equivalent to 66% of its market capitalization, a dividend yield of 8.9%, and the recent announcement of a share buyback.

Established in 1982, UIEL is a company specializing in electronic components. It was listed on the KOSDAQ market in 2001 and has subsidiaries in Hong Kong, Vietnam, China, and India, supplying various components-including SIM trays-to global smartphone manufacturers. In 2024, the company achieved strong results, recording sales of 424.7 billion KRW, operating profit of 21.1 billion KRW, and net profit of 29.8 billion KRW.

Lee Chungheon, a researcher at ValueFinder, stated, "Starting in 2024, the global smartphone market is entering a recovery cycle driven by two structural changes: the transition to AI and the popularization of foldable phones. Last year, the Galaxy Z Fold7 accounted for a 64% market share as of the third quarter. In 2026, the advancement of on-device AI features and the widespread adoption of foldable devices are expected to improve the product mix, significantly increasing profit leverage across the entire value chain. Accordingly, the company, which manufactures and supplies essential smartphone components such as SIM trays, is expected to benefit."

Lee particularly highlighted UIEL's core technology in SIM trays. Since the introduction of waterproof features with the Galaxy S5, the technical requirements for external components have increased, and SIM trays are known to require highly complex manufacturing processes. The company has secured relevant patents, demonstrating its technological capabilities, and has continued to strengthen partnerships by stably supplying key components from the Galaxy S3 to the latest models.

Lee added, "We estimate last year's sales at 410.3 billion KRW, operating profit at 25.4 billion KRW, and net profit at 19.8 billion KRW. Given the company's undervalued status, financial stability, high dividends, and shareholder value enhancement in line with government policy-which remain largely unrecognized by the stock market-I believe this will be a foundational year in which a favorable environment for the company will continue."