Shinhan Investment & Securities sharply raised its target price for BH, saying the company needs to be revalued as a robotics value chain corporation. It kept its investment rating at Buy and lifted the target price 84% to 46,000 won from 25,000 won. BH closed at 28,700 won in the previous trading session.
Oh Kang-ho, an analyst at Shinhan Investment & Securities, said, "In the past, earnings volatility driven by smartphone demand was the investment point, but now it is time to focus on new growth engines based on product competitiveness," and added, "Along with expanding demand for flexible printed circuit boards (FPCB) in the robot joint segment, structural growth in 2027 and 2028 is expected."
BH is a major global producer of FPCBs for OLED. FPCBs are key components with advantages such as design flexibility, light weight, and durability, and are widely used in smartphones, IT devices, and electric vehicles. Shinhan Investment & Securities noted that the application scope is expanding from the existing mobile-centric business structure to IT OLED and electric vehicles, and further into the robotics market.
In particular, it projected that demand for FPCBs will increase in the robot joint segment as the robotics industry grows. Oh said, "A new growth axis is emerging through the expansion of downstream industries," and explained, "New demand creation is expected in FPCBs and wireless charging segments."
It also assessed the earnings stability of existing core businesses positively. Shinhan Investment & Securities projected that global flagship smartphone shipments will increase steadily. It estimated that a major client's first-quarter shipments this year will rise 10% from a year earlier and 20% from the previous model. In contrast, shipments by Chinese local brands are expected to decline, suggesting a differentiated earnings trend.
The IT OLED segment is also expected to see sales growth in the second half. Oh said, "Rather than concerns about slowing demand for smartphones and IT devices, the business has entered a phase where its fundamentals are being confirmed."
Shinhan Investment & Securities applied a price-earnings ratio (PER) of 12.3 times, the highest level of the past five-year average, to derive the target price. That is 31% higher than the valuation previously applied. It also raised its 2027 expected earnings per share (EPS) by 38% from the prior estimate.
Oh explained, "As the company has entered a phase of market expansion and business diversification, a new valuation is necessary," adding, "The current 2026 expected PER is only about 9.9 times, making the valuation attractive."
He added, "Depending on the pace of entry into the robotics market ahead, an additional valuation premium is possible," and said, "Client flagship demand is stabilizing, and growth by business is expected to gain traction in the second half."