Hana Securities said on the 3rd that SOLiD's share price is likely to rise, reflecting the recent KOSDAQ index gains and strong stock rallies in telecom equipment at home and abroad, as well as the expansion of European clients. It raised its target price to 15,000 won from 12,000 won and maintained a "buy" rating. SOLiD's previous session closing price was 8,320 won.
SOLiD, a company specializing in in-building solutions, tends to move later than the market, and Hana Securities projected a catch-up phase would appear amid the recent KOSDAQ rally.
Kim Hong-sik, a researcher at Hana Securities, said, "Fourth-quarter results last year were solid, and with the U.S. market recovering and the expansion of clients in Europe, the profit growth trend will continue this year," and added, "Benefits from U.S. and European sanctions on Chinese equipment and the fact that the price-to-book ratio (PBR) based on this year's estimated results is around 1.5 times, indicating undervaluation, are also reasons it is a good time to buy."
Since 2023, SOLiD has seen a continued decline in profits, largely due to weaker sales in the United States and Korea. However, this year sales are expected to rise gradually, turning the trend toward profit growth.
Kim said, "In Korea, the sales uptrend is expected to appear only in 2027, but aided by strong exports, results should be better than last year," and added, "By product, sales of the core DAS products will decline, while sales of the new VARS will increase."
Kim also said there is a high possibility that the rotational rally seen in 2019 will reappear. The sharp stock surge that moved from RFHIC to KMW in 2018–2019 flowed into a surge in SOLiD's share price, while in 2021–2023, when results actually recovered, the stock fell.
Kim said, "SOLiD's results likely bottomed last year and will start to rebound gradually this year, with steep profit growth expected in 2027, but the stock may move ahead," and noted, "Be mindful that, within a rotational rally, fund flows could skew sharply."