Hana Securities said on the 10th that an earnings surprise (results exceeding market expectations) at RFHIC is continuing and a "tenbagger (a stock that rises tenfold)" is expected. It raised its target price to 100,000 won from 80,000 won. RFHIC's closing price in the previous transaction day was 63,200 won.
Kim Hong-sik, an analyst at Hana Securities, said, "With countries around the world moving to adopt 5G SA and Raytheon emerging as a key supplier in defense and Ericsson in telecommunications, the streak of earnings surprises is likely to continue in 2026–2027."
Recently, RFHIC signed a power amplifier supply contract worth about 50 billion won with the global defense company Raytheon. Kim said, "There appears to be a strong chance that such events will be added in the coming months," adding, "Annual revenue related to Ericsson and Raytheon could exceed 100 billion won."
Market conditions are also seen as favorable. Kim said, "Global carriers, including those in the United States, are moving in earnest to adopt 5G SA, and while regulators are in the midst of reallocating spectrum and supplying new spectrum, there is a shortage of suppliers," adding, "As U.S. and European Union (EU) restrictions on Chinese equipment and parts expand, new sales channels for RFHIC and RF Materials are increasing."
The stock is also considered undervalued relative to earnings. Kim said, "Compared with the historical price trends of the peer group and RFHIC, the price-earnings ratio (PER) is 60 times and the price-to-book ratio (PBR) is 6 times," diagnosing it as "historically undervalued despite the sharp share-price rise."