DAISHIN SECURITIES analyzed on the 23rd that the poor sales of the iPad Pro and the involvement of a competitor in supply led to poor performance for BH. They adjusted their target price downward from 23,000 won to 20,000 won, while maintaining their investment opinion as 'buy'. The closing price of BH on the previous trading day was 12,290 won.
DAISHIN SECURITIES projected that BH's sales in the first quarter of this year would decrease by 33.4% year-on-year to 325 billion won, with an operating loss of 14.2 billion won. This is due to the low operating rate of multi-layer printed circuit boards (MLB), which continues to burden fixed expenses, in addition to additional costs related to inventory.
Park Kang-ho, a researcher at DAISHIN SECURITIES, noted, "In the smartphone main board (HDI) sector, Apple replaced the flexible multi-layer printed circuit board (PCB) with HDI for the iPad Pro last year," and explained, "BH made new investments, but the poor sales of the iPad Pro and a competitor taking over supply resulted in poor performance."
Researcher Park stated that the poor performance in the first quarter of this year is already reflected in the current stock price, and that the focus should be on the recovery of the second quarter's performance and the undervaluation of the valuation (corporate value). He maintained a focus on increasing weight from a medium- to long-term perspective.
Operating profit in the second quarter is expected to turn to a surplus of 28.2 billion won, while sales are projected to decrease by 4.3% year-on-year to 448.4 billion won. While the tariff disputes between the U.S. and China negatively affect Apple iPhones, initial production is scheduled to proceed as planned in the second quarter of this year.
Researcher Park stated, "The current stock price valuation is judged to be historically low and undervalued," and added, "This year's growth rate is slower compared to the past, but with the expansion of market share in electric vehicles and HDI, and expecting differentiated growth from next year, the valuation attractiveness is high."