Hana Securities on the 23rd recommended buying RFHIC(218410), saying that even though the outlook for global fifth-generation (5G) mobile network investment next year is bright, the KOSDAQ index plunged, leading to a simple accompanying share-price decline. It kept its investment opinion at Buy and its target price at 150,000 won. RFHIC's previous closing price was 44,950 won.
Hana Securities said that RFHIC's recent earnings trend and outlook are favorable, and that despite a U.S. spectrum auction event, the stock plunged in the short term.
It also noted that investment demand is beginning in earnest for AI-RAN, a technology that combines artificial intelligence (AI) and communications infrastructure, and that, considering Lumentum order trends, the profit contribution of subsidiary RF Materials is expected to increase next year as well.
In addition, it is seen as a prime beneficiary of the U.S. upper C-band spectrum auction, which is a high frequency, and when Samsung secures equipment orders from Verizon Communications Inc. in the GaN TR segment, it is expected to have an exclusive position, allowing for a high multiple.
Kim Hong-sik, a researcher at Hana Securities, said, "Even though the outlook for global 5G investment in 2027 is bright, a simple accompanying share-price decline occurred due to the KOSDAQ index plunge," and added, "At this point, despite no particular bad news, it is necessary to soberly examine the fact that the share price fell 66% from its peak in three months."
The analysis is that simple deterioration in investor sentiment and unstable supply-demand dynamics pushed down RFHIC's share price.
Kim said, "With the U.S. upper C-band auction—the strongest investment base for telecom equipment in 2027—imminent, RFHIC's share price has fallen sharply," and analyzed, "It is time to consider buying in preparation for a second leg up."