[Click e-Stock] "Optoelec Recovers Competitiveness in Optical Filters and OIS... Growth Accelerates with New Production Line"

On July 6, SK Securities stated that Optoelec is entering a phase of normalized performance based on the recovery of competitiveness in its optical filter and optical image stabilization (OIS) segments. The brokerage forecast that the company’s mid- to long-term growth will continue, driven by the effects of newly operational production lines.

Hyungwoo Park, a researcher at SK Securities, commented, “The competitive environment for core components such as optical filters and OIS is improving, which is strengthening Optoelec’s position in the supply chain. The ongoing reallocation of volumes resulting from competitors scaling back their businesses is also expected to have a sustained positive impact.”

Optoelec is a specialist in optical components, focusing primarily on the production of optical filters, OIS actuators, and lenses for cameras. The company is particularly recognized for its technical capability to independently develop new optical filters, and it has been responsible for filter development for major clients for approximately 15 years, earning it a reputation for technological competitiveness.

From a performance perspective, the easing of one-off cost burdens has led to a recovery in profitability centered on its core business. The company confirmed a turnaround by posting an operating profit in the first quarter of this year. SK Securities projects that Optoelec’s revenue for this year will reach 22.87 billion won, with operating profit expected at 1.4 billion won.

By business segment, the growth potential of OIS is particularly noteworthy. With full-scale mass production of general OIS following folded zoom OIS, the company’s product portfolio is expanding. SK Securities also indicated the possibility of the company’s OIS being newly adopted in future flagship smartphone models.

The new automated production line was also cited as a key driver of future earnings growth. This production line is expected to generate approximately 1.5 billion won in revenue this year, with its contribution projected to expand to around 7.5 billion won by 2027.

As for the optical filter business, SK Securities analyzed that the company is poised to benefit from supply chain restructuring. With competitors reducing business activity and weakening research and development capabilities, Optoelec’s strategic significance is expected to rise further, especially as only a limited number of domestic companies can develop new optical filters.

SK Securities identified Optoelec’s structural growth focused on OIS and optical filters, productivity improvement through the new automated production line, and expansion into automotive and other application fields as the company’s mid- to long-term growth drivers. The lens business is also expected to become a new growth engine as its applications broaden to include automotive and defense sectors.

Regarding mid- to long-term performance, SK Securities anticipates that Optoelec will achieve revenue of 26.3 billion won and operating profit of 2.37 billion won by 2027. The company attributed this to the stabilization of new production lines and the improvement of its business structure, which are expected to enhance performance.

Researcher Park stated, “Optoelec is simultaneously pursuing business restructuring and performance normalization based on its core technological competitiveness in optical filters and OIS. With the increasing share of high value-added products and improvements in productivity, there is a possibility that the company’s value could be reassessed.”

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