NH Investment & Securities noted on the 30th that it secured a new client in FADU and projected that the performance recovery trend would continue next year. It did not present a target stock price or investment opinion.
Ryu Young-ho, a researcher at NH Investment & Securities, said, "FADU is gradually recovering after a sharp decline in sales due to the major clients reducing investments since its listing. If major clients expand their investments in general servers next year and sales from new clients become substantial, the performance improvement trend will continue. "
FADU's third-quarter revenue was 10.09 billion won, an increase of 3044.9% compared to the same period last year, while it recorded an operating loss of 30.54 billion won. Ryu noted, "We recovered to a sales figure in the 10 billion range after six quarters, and the larger-than-expected loss was due to increased spending on new projects and research and development. "
He added, "As key competitor Marvell Technology is focusing its investments on the data center segment, interest in its existing controller business is decreasing, creating opportunities for FADU to expand its market share and grow its market position. "