[Alpha Biz= Reporter Kim Minyoung] KB Securities projected on the 17th that BH Co., Ltd. would achieve record-breaking second-quarter results, driven by the demand for artificial intelligence (AI). They maintained a "Buy" rating and raised the target price from 26,000 won to 33,000 won.
KB Securities stated, "BH's sales for the second quarter of this year are estimated to be 439.6 billion won, up 44% year-on-year, and operating profit is expected to increase by 192% to 28.4 billion won, surpassing market expectations with the highest second-quarter performance in history."
KB Securities explained, "Sales of smartphones to North American customers are expected to expand significantly. The 2023 models had limited initial production due to semiconductor supply issues, resulting in additional orders for supplementary production. The initial production volume for the 2024 models is estimated to increase by more than 10% compared to the previous model, and the mass production schedule for related parts has been brought forward compared to last year, expanding the reflected amount in the second quarter."
They added, "BH's stock price has been stuck at a mid-single-digit PER (price-to-earnings ratio) due to the limited growth of the smartphone market, but the aggressive adoption of AI by key customers is expected to lead to a valuation increase for BH."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
