Telecommunications equipment maker RFHIC's stock purchase opinion was maintained.
In the second half of this year, 5G telecommunication-related performance is expected to expand and the details of the power semiconductor joint venture business are expected to materialize.
Shinhan Financial Investment maintained its RFHIC target price at 55,000 won and its investment opinion at 'buy' on the 27th.
"According to the current supply plan, the volume related to 5G telecommunications supplied to Samsung Electronics and Verizon will gradually increase in the second half of the year," Shinhan Investment said. "The fact that Verizon and AT&T of the U.S. did not revise their annual facility investment (CAPEX) targets in the second quarter will also increase the reliability of RFHIC's performance in the second half of the year.".
It is expected that overseas supply related to 5G communication will continue to increase after the fourth quarter. "5G Telecommunications will be supplied to Japan and Canada in the fourth quarter and the U.K. in the first quarter of 2022," Shinhan Investment Corp. said.
"The products will be supplied to India starting in the fourth quarter, but it has been largely reflected in our earnings estimates in 2022 in consideration of uncertainties in COVID-19 there.".
RFHIC is expected to generate 124.1 billion won in sales and 12.2 billion won in operating profit in 2021. Sales will increase by 76% from 2020 and operating profit will return to the black.
The establishment of a joint venture related to power semiconductors under way with SK Siltron is also expected to take shape in the second half of this year.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
