"BH Share Price Reflects Concerns Over Core Business Slowdown"[Click e-Stock]

Meritz Securities Lowers Target Price
from 38,000 Won to 32,000 Won

Meritz Securities has maintained its "Buy" investment rating on BH Corporation, but lowered the target price from 38,000 won to 32,000 won.

Seungsoo Yang, a researcher at Meritz Securities, stated, "The current share price of BH Corporation has fallen by 50.3% from its yearly peak, reflecting much of the concerns over a slowdown in core business performance," adding, "This is considered a phase where investors can focus more on mid- to long-term growth opportunities rather than short-term earnings pressure."

Yang forecasts that BH Corporation's operating profit for this year will fall short of the market consensus (13.6 billion won) by 7.5%. Although a favorable foreign exchange environment is expected to support robust sales to North American clients (Apple) and aggressive shipment expansion, Yang anticipates that domestic sales will fall significantly short of expectations as domestic clients increasingly adopt reused components in response to rising memory prices and cost reduction efforts.

However, he also assessed that the visibility of BH Corporation’s earnings growth and its potential to expand into new businesses remain high. Yang commented, "Thanks to a low base and the expansion of IT OLED sales, the company’s operating profit is expected to grow by 89.9% this year. Next year, with the expansion of the iPhone lineup, an additional 31.1% profit growth is anticipated." He added, "Attention should also be paid to the fact that the charging module business is expanding its applications from finished vehicles to robots, and that there is a growing trend to replace internal robot wiring harnesses and copper windings with FPCBs."

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