[Market Focus] BH, an "iPhone Beneficiary Stock," Jumps Over 4%

Shares of BH, a component supplier, are on the rise as it is expected to benefit from strong sales of the Apple iPhone 17 and the launch of a foldable iPhone.

As of 9:31 a.m. on the 10th, BH was trading at 20,800 won, up 910 won (4.58%) from the previous trading day.

On the same day, KB Securities maintained its Buy investment rating on BH and raised its target price by 14% from the previous level to 24,000 won.

Lee Changmin, an analyst at KB Securities, explained the background of the target price hike, saying, "We took into account the continued strong sales momentum of the iPhone 17 and the benefits from the launch of the foldable iPhone," and added, "We also considered the easing of fixed-cost burdens driven by higher penetration of organic light-emitting diode (OLED) displays in the tablet lineup, and accordingly raised the projected average return on equity (ROE) for 2026 to 2030 by 0.6 percentage points, from 10.7% to 11.3%."

In the fourth quarter of last year, BH posted revenue of 508.0 billion won and operating profit of 28.8 billion won (turning to profit), in line with the market consensus. The analyst said, "Thanks to the blockbuster success of the iPhone 17 series, performance of radio frequency printed circuit board (RF-PCB) products related to the iPhone remained solid," adding, "Compared with the same period a year earlier, when the company booked a loss, results were better this time because annually recurring one-off costs were reflected only to a limited extent."

He went on to say, "For the first quarter of this year, we estimate revenue of 363.0 billion won and operating profit of 4.3 billion won (turning to profit), and despite it being an off-season, the company is expected to remain in the black thanks to strong sales of the iPhone 17 series and the launch effect of the iPhone 17e."