[Market Focus] BH Rises Over 4% on North American Foldables and New Business Expectations

Shares of BH are on the rise, buoyed by increasing exports to North America and expectations surrounding its new physical AI (artificial intelligence) business.

As of 9:34 a.m. on April 10, BH was trading at 22,650 won, up 4.37% from the previous trading day.

On this day, Eugene Investment & Securities maintained its “Buy” rating for BH and raised its target price from the previous 23,000 won to 27,000 won.

Hyung Lee, a researcher at Eugene Investment & Securities, stated, “Driven by North American clients’ demand for foldable phones, we expect steady profit growth through 2028,” adding, “Diversification of physical AI revenue and reduced dependency on specific clients will help resolve the factors that have led to the stock’s discount.”

For the first quarter of this year, sales are projected at 374 billion won and operating profit at 7 billion won. This represents a 12% increase in sales and a turnaround to profitability compared to the same period last year, slightly exceeding market expectations. The assessment is that the shipment volume of new products from major North American clients increased by about 34% compared to previous models, and a favorable exchange rate environment also supported the results.

The new product effect is expected to become more pronounced from the second half of this year. Researcher Lee commented, “Production of flexible printed circuit boards (FPCB) for North American clients’ foldable products will begin at the end of next month,” and predicted, “Leveraging its near-monopoly market share with domestic display partners, BH is expected to record 177.8 billion won in foldable-related sales this year and 350.7 billion won next year.”

A rebound is also anticipated in the IT OLED (organic light-emitting diode) segment, which had previously posted losses. Starting from the third quarter, as domestic partners begin exclusive production of new products, sales in this segment are forecast to grow more than threefold compared to last year. It is also expected that, on a second-half basis, the segment will reach break-even point (BEP).

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