BH’s stock price is attractive considering expectations that it will benefit from expanding foldable smartphone market as well as its earnings recovery, said NH Investment and Securities on Feb. 12 maintaining a “buy” recommendation and 26,000 won (US$23.12) target price.
Its fourth-quarter operating profit slightly missed market expectations coming in at 33.1 billion won. Slow demand from North American smartphone makers has been the main reason but despite the reduction in size, it managed to maintain solid operating profit rate. Its stock price has declined excessively as investors fretted over decline in demand, but concerns of slow sales have already been reflected. Its momentum from foldable smartphones will also be maintained. Its earnings will bottom out in the first quarter, a low season in North America, and will gain through the second half. Growing infiltration rate in OLED display too will sustain its long-term growth, said analyst Lee Gyu-ha.
New smartphones will be rolled out around the world starting with Samsung Electronics’ Galaxy S10, due to be released on Feb. 20, and foldable will be a key word for the time being. If the public response is satisfactory, BH’s valuation along with the unit price of its flagship flexible printed circuit board will rise, underlined the analyst.
By Hwang You-mee (firstname.lastname@example.org)