[Click e-Stock] "BH Target Price Raised... Apple Foldable Phone Production Becoming Visible"

"Physical AI, a New Growth Engine"

On March 23, Daishin Securities announced that it has raised its target price for BH Co., Ltd. to 35,000 won, maintaining its 'Buy' investment rating. This decision reflects the growing visibility of Apple’s foldable phone production.

In a report released the same day, Kangho Park, a researcher at Daishin Securities, stated, "With the supply schedule for OLED displays and memory for Apple’s foldable phone becoming more concrete this year, production is expected to begin in June. In addition, as the era of physical artificial intelligence (AI) begins, and the need for charging systems and R/F PCBs (rigid-flex printed circuit boards) increases in the humanoid and robotics sectors, BH Co., Ltd. is emerging as a key partner. We forecast strong growth."

Expectations for Apple’s foldable phone production are projected to drive BH Co., Ltd.’s 'third wave of growth.' The first wave occurred in 2017 when Apple first adopted OLED displays for the iPhone and selected BH Co., Ltd. as a supplier, resulting in an 86% year-on-year increase in revenue. The second wave came in 2022, when a competitor exited the market, allowing BH Co., Ltd. to become the largest supplier and achieve a 62% year-on-year revenue increase.

Apple is expected to launch its foldable phone in September this year, with R/F PCB supply projected to begin in June. The use of two bar-type displays per foldable phone is estimated to result in 1.5 to 2 times higher sales. Park estimated, "We project Apple’s foldable phone sales at approximately 6.5 million units, and considering initial yield and inventory, around 15 million displays will be produced. Additional annual revenue is estimated at about 350 billion won, with total second-half revenue expected to reach 1.3 trillion won—a 21.1% increase compared to the same period last year."

As the role of R/F PCBs becomes increasingly important in physical AI, it is expected to serve as a new growth engine for BH Co., Ltd. The company is entering the TX (transmitter) market in the physical AI charger segment, which is anticipated to generate new revenue starting next year. Park noted, "The role of R/F PCBs is also crucial in supporting the head, limb joints, and precision movements in robot and humanoid operations. By supplying R/F PCBs to Apple, BH Co., Ltd. has also secured technology and production capacity for HDI (high-density interconnect) rigid PCBs. As demand for physical AI grows, the push for charging systems and R/F PCB sales is set to become a major new growth axis."

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