[Click eStock] "RFHIC Target Price Raised... Market Share Expansion Expected"

Hana Securities announced on the 28th that it is maintaining its "Buy" investment rating for RFHIC, while raising its target price by 33% to 80,000 won, reflecting the company's expanding market share.

Kim Hongsik, a researcher at Hana Securities, stated, "Starting this year, RFHIC's market share in the communications transistor (TR) sector could expand from the previous level of around 3% to as much as 10%." He explained, "This is because NXP, the largest player and competitor in the market, is reportedly shifting its focus to automotive applications and withdrawing from the communications sector, and following the United States, the European Union (EU) has also begun to ban the use of Chinese equipment and components."

He added, "From the perspective of global system integrators such as Ericsson, Nokia, and Samsung, there are not many alternatives. With a wide range of products that demonstrate strong performance at high frequencies, and as the use of frequencies above 3GHz becomes mainstream and 5G standalone (SA) mode takes hold in the market, the outlook for RFHIC's market share becomes even more positive."

Kim also noted, "At the beginning of last year, negative performance forecasts for RFHIC were predominant, but this year the company achieved record-high results with consolidated sales of 185.6 billion won and operating profit of 30.5 billion won." He continued, "With continued sales growth in the defense sector and rapid sales growth expected in the communications sector, RFHIC is anticipated to exceed market expectations again this year."

In particular, he predicted, "While last year was about normalizing sales generated from Samsung Electronics, this year, new sales from Ericsson will become a major issue."