"Buy Before June"... U.S. Catalysts Set to Drive Record Sales for This Stock [Weekend Money]

Hana Securities Resumes Coverage of HFR
"Expected to Rise Ahead of June U.S. Spectrum Auction"

With the upcoming U.S. spectrum auction scheduled for June, HFR, a telecommunications equipment company, has emerged as a "beneficiary stock."

Hana Securities recently announced that it is resuming coverage on HFR with a "Buy" investment rating and a target price of 50,000 won. Hongshik Kim, an analyst at Hana Securities, stated, "HFR is the biggest beneficiary of the June U.S. spectrum auction, yet its stock price has not risen significantly," and added, "I recommend buying before June."

Stock Price Increase Rates by Domestic Telecommunication Equipment Categories for the Past Year

In the United States, the largest-ever spectrum auctions are scheduled to take place consecutively this June. In this context, several factors are considered positive: AT&T has announced a plan to double its capital expenditures (CAPEX) to $250 billion over the next five years compared to the previous period, and domestic vendors are expected to benefit as Chinese telecommunications equipment companies are being pushed out of the U.S. market. Kim noted, "Huawei previously held the number one market share, and if you combine ZTE's share, it's as if nearly half of the global SI (system integrator) market is now available to others," analyzing, "It is no exaggeration to say that domestic telecommunications equipment companies set to win contracts from global SIs this time will record all-time high sales."

Additionally, he highlighted the fact that HFR has a reference supplying fronthaul to AT&T via Fujitsu Onefinity, the second-largest SI company for transmission equipment in the U.S. Kim emphasized, "Typically, vendors with a track record of previous SI supply tend to win repeat orders. Therefore, selecting HFR, which supplies to Fujitsu, alongside suppliers to Nokia and Samsung, would ensure a stable portfolio for the North American market."

Overall, it is assessed that HFR has sufficient stock price growth potential. Kim explained, "When the spectrum auction period arrives, wireless equipment stocks should outperform wired equipment stocks, and leading stocks should outperform latecomers. However, HFR's stock price increase is currently smaller than both the leading wired equipment stocks and the second- to third-ranked vendors within wireless equipment." He further predicted, "Given that leading wireless equipment stocks have already surged three- to ten-fold, it is highly likely that HFR's stock price will experience a catch-up rally around June, when the U.S. AWS-3 re-auction takes place."

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