[Click e-Stock] "Still Low Stock Price... RFHIC Target Price Raised"

Hana Securities announced on March 10 that it is maintaining its "Buy" investment rating for RFHIC and raising its target price to 100,000 won.

Hongshik Kim, an analyst at Hana Securities, explained, "The decision to raise the target price is a result of the recent sharp rise in the share prices of global telecommunications equipment companies." He added, "Based on this year's earnings, the price-to-earnings ratio (PER) is 60x and the price-to-book ratio (PBR) is 6x. Compared to overseas competitors and RFHIC's historical multiples, these levels are not high."

Sales growth driven by large orders is also anticipated. Kim commented, "RFHIC has signed a power amplifier supply contract worth 50 billion won with the global defense company Raytheon, and similar events are expected to occur in the coming months. Following spectrum allocation and new spectrum auctions in the United States, it is highly likely that RFHIC will be selected as a vendor for Ericsson within the year, resulting in large-scale orders in the telecommunications equipment sector. Additional supply contracts with Raytheon are also expected."

Performance that exceeds market expectations is expected to continue this year. Kim noted, "Given the recent market environment, NXP's withdrawal from the telecommunications sector has led to increased demand, but supply is currently insufficient. The adoption of 5G Standalone (SA) by global telecom operators, including those in the United States, is accelerating, and regulatory agencies are focused on spectrum reallocation and new spectrum supply. As a result, RFHIC may deliver higher-than-expected results."

This content was produced with the assistance of AI translation services.