[Alpha Biz= Reporter Kim Minyoung] On August 5, BNK Securities reported that BH is expected to achieve its highest-ever quarterly performance in the third quarter of 2024. The firm maintained its 'Buy' rating on BH and raised the target price from 28,000 KRW to 30,000 KRW.
For the second quarter of 2024, BH reported sales of 468.5 billion KRW and operating profit of 31.3 billion KRW, surpassing consensus estimates by 13% and 40%, respectively. The strong performance was driven by increased demand for display FPCBs (flexible printed circuit boards) from North American smartphone customers and record-high sales of 94.6 billion KRW for BH EVS (wireless charging modules for vehicles), continuing its profitability streak.
BNK Securities forecasts that the third quarter will see a 26% increase in sales year-over-year, reaching 573 billion KRW, thanks to the new revenue from IT OLED FPCBs, higher market share in North American supply chains, and seasonal demand effects. Operating profit is expected to rise by 33% to 67.6 billion KRW, setting a new quarterly record.
Despite the recent surge in BH's stock price reflecting the strong Q2 performance, BNK Securities notes that the company's diversified business structure, achievements in vehicle wireless charging modules, new product impacts (IT OLED), and increased market share continue to enhance its competitive edge and performance differentiation.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
