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[Alpha Biz=(Chicago) Reporter Paul Lee] KB Securities predicted on the 2nd that RFHIC's poor performance, which was inevitable due to a delay in orders for its telecommunication equipment business last year, will improve this year due to increased sales for Samsung Electronics. However, the target stock price dropped from 25,000 won to 23,000 won, and the investment opinion 'neutral' was maintained.
KB Securities estimated RFHIC's sales and operating profit in the fourth quarter of last year at 36.9 billion won and 5.8 billion won, respectively. The figure is up 84 percent from the previous quarter and turned into a surplus.
KB Securities explained, "Sales of telecommunication equipment are expected to remain sluggish following the third quarter, but earnings are expected to improve significantly compared to the previous quarter as profitable overseas defense sales expand significantly."
"Huawei, a major customer of RFHIC, was directly hit by its performance as it was sanctioned by the US government in 2019," KB Securities said. "Since then, forward demand has slowed due to passive investment by non-Chinese global mobile carriers, and its performance has been sluggish."
KB Securities added, "In 2024, the company's performance is expected to improve due to increased sales of Samsung Electronics' network division, which has newly emerged as the largest customer along with existing defense sales."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
