[Infostock Daily= Reporter An Hoe Hyun] On the 25th, NH Investment & Securities maintained its investment opinion 'Buy' on KHVATEC, saying that demand will expand due to the launch of mid- and low-priced foldable smartphones this year, and raised its target stock price by 8.3% to 26,000 won from the previous 24,000 won.
KHVATEC manufactures and sells hinges, an essential part of metal cases and foldable smartphones.
"Foldable smartphone shipments were sluggish last year, but they will be higher than expected this year," the company explained, adding, "NH Investment & Securities raised its outlook for foldable smartphone shipments by 8.8% from 8 million units to 8.7 million units."
NH Investment & Securities predicted, "KHVATEC's annual performance this year rose 9.4% from the previous estimate to 33.4 billion won, up 749.9% from the previous year," adding, "The operating profit ratio will reach 10%." The company then explained, "We expect earnings growth to continue in the mid- to long-term not only by expanding shipments of customers' foldable smartphones but also by diversifying foldable products and customers."
Reporter An Hoe Hyun ahh@infostock.co.kr