RFHIC, 4Q performance are likely to improve (Hana Financial Investment)

Hana Financial Investment maintained its target stock price of 60,000 won and its investment opinion of "buy" on RHFIC, saying it is likely to improve its fourth-quarter earnings.

Hana Financial Investment analyzed, "Although it recorded an earning surprise in the second quarter of this year and an earning shock in the third quarter, it is expected to show a remarkable performance improvement again after the fourth quarter.".

"Positive performance is expected to surpass 2018 earnings next year due to increased sales of telecommunication companies other than Verizon in the U.S. through Samsung, and it is expected to produce remarkable results from next year in new business sectors such as power semiconductors and plasma," Hana Financial Investment said.

"The outlook for performance between 2022 and 2023 is also bright and is expected to be largely due to the increase in sales of U.S. telecommunication companies through Samsung Electronics, and sales to the U.S. are expected to reach about 100 billion won annually in the network equipment sector alone," Hana Financial Investment said.

"Sales will be concentrated on Verizon in the short term, but if Samsung is selected as a vendor by DC Network and AT&T in the selection of equipment makers in December this year, it will be another opportunity," Hana Financial Investment added.

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com