iM Securities analyzed on the 22nd that there are high expectations for revenue related to foldable iPhones for BH. It then raised the target price from the existing 15,000 won to 20,000 won, presenting an investment opinion of 'buy.' The closing price of BH on the previous trading day was 13,910 won.
iM Securities estimates that BH's annual revenue will grow to 1.74 trillion won, 1.99 trillion won, and 2.25 trillion won from this year through 2027. For the same period, operating profit is expected to be 31 billion won, 100.7 billion won, and 135 billion won.
In particular, expectations related to foldable iPhones are high. Samsung Display (SDC) is the exclusive supplier of internal displays for foldable iPhones, and BH is expected to be a de facto monopoly supplier of flexible printed circuit boards (FPCBs) within SDC. BH's revenue from FPCBs for foldable iPhones is projected to be 195 billion won in 2026 and 501 billion won in 2027.
Ko Eung-young, a researcher at iM Securities, said, "There is a potential risk of cannibalization between the foldable iPhone and the Pro Max model, but looking at the case of Android, the consumer demographic is different from that of the existing bar-type, so the impact will be limited."
Also, next year, losses related to organic light-emitting diode (OLED) are expected to improve. Researcher Ko explained, "OLED will be equipped in MacBook Pro and iPad Mini, with annual sales of the MacBook Pro at 5 million units, which is about 80% of the iPad Pro."
However, short-term performance is weak. For the second quarter of this year, BH's revenue and operating profit are estimated to be 383.1 billion won and 8.1 billion won, respectively. Operating profit is expected to fall short of the securities' forecast of 10.3 billion won.
Researcher Ko stated, "Due to adjustments in delivery schedules from clients for new iPhone components, around 4 million units have been deferred to the third quarter of this year, and losses from printed circuit boards (PCBs) for IT OLEDs are still ongoing," adding that the finalization of the vendor list, which is expected to be completed in the third quarter, is important.